Preliminary data published by INSEE showed that GDP grew by 0.4% in the 3rd quarter after an increase of 0.2% in the 2nd quarter. This was the highest growth since the 4th quarter of 2023, boosted by the Paris Olympic and Paralympic Games. Economists had expected growth to accelerate to 0.3%. On an annual basis, the economy expanded by 1.3% after growing by 1% in the 2nd quarter.
INSEE stated that final domestic demand (excluding inventories) regained some momentum, driven by a rebound in household consumption (+0.5% after +0.0%). Gross fixed capital formation fell 0.8% after a 0.1% decline in the 2nd quarter. Overall, domestic demand (excluding inventory) made a positive contribution to GDP growth: +0.2% after +0.1% in the 2nd quarter. The contribution of foreign trade to growth was 0.1% after +0.2% in the 2nd quarter, with imports declining more sharply (-0.7% after +0.1%) than exports (-0.5% after +0.5%). Changes in inventories made a small contribution to GDP growth: +0.1 points after a zero contribution in the 2nd quarter.
Total production (goods and services) accelerated slightly - to +0.4% from +0.3% in the 2nd quarter. Production of market services was dynamic in the third quarter (+0.5%, as in the previous quarter). Meanwhile, production in energy, water and waste remained strong (+2,1% after +1,7%). Conversely, production in the manufacturing industry fell slightly this quarter (-0.1% after -0.3%). Capital goods production recovered a little (+0.5%). Construction output stabilized (+0.0%) after declining over the previous four quarters.