The French economy grew at a slower pace in the third quarter due to weaker household spending and foreign trade.
The economy expanded 0.2 percent sequentially, as initially estimated, in the third quarter, slower than the 0.5 percent increase a quarter ago, detailed data from the statistical office INSEE showed Wednesday.
Household consumption fell slightly by 0.1 percent, in contrast to the 0.4 percent rise a quarter ago, pulled down by their consumption of goods. Government spending moved up 0.2 percent after staying flat.
Gross fixed capital formation growth accelerated to 1.7 percent from 0.5 percent, underpinned particular by business investment in automobiles and computer services.
Overall, final domestic demand excluding inventories contributed to GDP growth by +0.4 points after +0.3 points in the second quarter.
The contribution of foreign trade to GDP growth was negative for the second consecutive quarter, at -0.5 points.
Exports grew moderately by 2.0 percent after 0.9 percent increase. At the same time, imports grew significantly by 3.5 percent after 1.6 percent increase.
Finally, the contribution of inventory changes to GDP growth was positive, at 0.3 points versus +0.4 points in the second quarter.
Another report from the INSEE showed that household spending declined the most since April 2021 due to the sharp drop in energy consumption. The mild weather in October prompted households to use less home heating.
Household consumption declined 2.8 percent on month after rising 1.3 percent in September. The decline was primarily driven by the 7.9 percent fall in energy consumption and 1.7 percent decrease in purchases of manufactured goods.