French GDP Growth Accelerates; Inflation Rises Marginally

(RTTNews) - The French economic growth accelerated as estimated in the third quarter on the Paris Olympic and Paralympic Games and inflation rose only marginally in November, official data revealed on Friday.

Gross domestic product logged a quarterly growth of 0.4 percent in the third quarter, which was unchanged from the previous estimate, the statistical office INSEE reported. This follows a 0.2 percent rise in the second quarter.

Household consumption rebounded 0.6 percent after being stable a quarter ago largely reflecting the registration of ticket sales for the Olympic and Paralympic Games. By contrast, the gross fixed capital formation continued to fall in the third quarter, down 0.7 percent as a result of a sharp decrease in manufactured goods. Overall, the contribution of final domestic demand excluding inventories to GDP growth was positive in the third quarter at 0.3 points.

Exports slid 0.8 percent and imports dropped 0.6 percent. As a result, the contribution of foreign trade to GDP growth was negative at 0.1 points.

Finally, the contribution of inventory changes to GDP growth was slightly positive, at 0.1 points.

Another data showed that household consumption declined in October due to the decrease in engineered goods spending and energy consumption. Household spending fell 0.4 percent on month in October, in contrast to the 0.1 percent rise in September.

Consumption of engineered goods decreased 1.3 percent and energy consumption was down 1.2 percent. Meanwhile, food consumption grew 1.2 percent.

In a separate report, the INSEE showed that consumer price inflation edged up to 1.3 percent in November from 1.2 percent in October. It was seen rising to 1.5 percent.

The statistical office said the near stability in inflation came from a slowdown in prices of food offset by acceleration in prices of services and a less marked fall in prices of energy.

Likewise, EU harmonized inflation moved up to 1.7 percent from 1.6 percent in October. Inflation figure matched expectations.

Monthly consumer price inflation softened to 0.1 percent from 0.3 percent in October. Meanwhile, the harmonized index of consumer prices posted a monthly fall of 0.1 percent after a 0.3 percent gain.

In a separate communiqué, the statistical office said producer prices declined for the eleventh consecutive month in October. Producer prices fell 5.7 percent on a yearly basis after easing 6.9 percent in September. On month, producer prices were up 0.9 percent following a 0.1 percent fall.

Another report on job market showed that payroll employment rose 0.2 percent or 48,700 in the third quarter after a 0.1 percent or a 15,200 decline in the second quarter.