Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

French Growth Hits Another Snag

By Philippe d'ArvisenetMarket OverviewSep 04, 2016 06:16AM ET
www.investing.com/analysis/growth-hits-another-snag-200151709
French Growth Hits Another Snag
By Philippe d'Arvisenet   |  Sep 04, 2016 06:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • French growth was nil in Q2 2016. Although a little sharper than expected, this payback is essentially due to temporary factors.
  • Rather good news on the labour market front helps keep in perspective this poor growth performance.
  • A technical rebound in Q3 growth is highly likely but the survey and economic data available so far point to a lacklustre upturn (0.3% q/q according to our estimates), in keeping with the recovery as a whole.

Among this summer’s economic news, the biggest negative surprise was the flat print for Q2 growth1. A payback was expected after the strong Q1 performance (+0.7% q/q), but it proved to be more severe than expected. GDP stagnated, falling short of our growth forecast of 0.2% q/q and the 0.3% q/q estimates by the INSEE and Bank of France. Almost all GDP components contributed to this weak performance.

Although household consumption held up a bit better than expected (it stagnated instead of declining slightly), investment, exports and changes in business inventories were weaker than expected: the declines in investment (-0.2% q/q) and exports (-0.1% q/q) were small but unexpected, while the change in inventory made a more negative contribution than expected (-0.7 percentage points). Two factors kept growth from slipping into negative territory: the still relatively strong rise in public expenditures (0.4% q/q) and the very positive contribution of imports. Indeed, imports dropped off sharply (-2% q/q), in keeping with domestic demand. All in all, the negative contribution of inventories was offset by the very positive contribution of net exports (+0.6 points) and the barely positive contribution of final domestic demand (+0.1 point, see chart 1).

To read the entire report Please click on the pdf File Below

by Hélène BAUDCHON

French Growth Hits Another Snag
 

Related Articles

French Growth Hits Another Snag

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email