Media ININ Economy We Trust
Media IN/Abu-dhabi/11-05-2019
The French economy advanced 0.3 percent on quarter in the three months to March 2019, the same pace as in the previous period and matching market expectations, a first estimate showed.
Household consumption and fixed investment were the main drivers of growth while net foreign demand contributed negatively.
In the first quarter, both internal demand excluding inventory changes and changes in inventories contributed 0.3 points to the GDP growth, respectively; while net foreign trade contributed negatively (-0.3 points).
Within domestic demand, household consumption picked up (0.4 percent compared to flat reading in Q4 2018). Consumption of goods rebounded (0.2 percent compared to -0.6 percent Q4 2018 ), mainly due to a rise in car purchase.
Expenditures on energy rose to 0.9 percent from -0.3 percent Q4 2018 boosted by spending on fuel.
Conversely, expenditures on food decreased sharply (-1.0 percent compared to -0.2 percent Q4 2018).
Meantime, consumption of services continued to rise (0.5 percent compared to 0.6 percent Q4 2018), driven by spending on accommodation and food services
In addition, fixed investment went up 0.3 percent, following a 0.4 percent growth in the prior quarter as corporate investment growth accelerated slightly (0.5 percent compared to 0.4 percent Q4 2018), as an increase in car purchases by businesses was almost offset by a decline in information, communication and business services.
On the other hand, household investment kept falling, partly due to new housing (-0.3 percent compared to -0.2 percent Q4 2018).
Meanwhile, government expenditure advanced 0.1 percent, after a 0.4 percent rise in the previous period.
Exports edged up 0.1 percent (compared to 2.2 percent in Q4 2018), while imports grew at a faster 0.9 percent (compared to 1.2 percent in Q4 2018).
Year-on-year, the economy expanded 1.1 percent in the first quarter, after a 1 percent expansion in the previous three-month period.
