French second-quarter GDP grows 0.2pc


FE Team | Published: September 21, 2018 15:17:23 | Updated: September 22, 2018 13:29:33


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The French economy grew 0.2 per cent in the second-quarter (Q2), unchanged from a previous estimate and the same rate as that seen in the first quarter, official data showed on Friday.

The world's 6th largest economy managed some growth as households saved extra cash gained from a rebound in purchasing power, crimping consumer spending, said the data.

The INSEE statistics agency said households’ real gross disposable income rose 0.7 per cent in the Q2 as inflation eased and the wealthy benefited from the scrapping of the wealth tax.

However, households stashed away the extra cash as the savings rate rose to 14.3 per cent in the Q2 from 13.7 per cent in the Q1, while consumer spending suffered a rare dip.

INSEE had said in a previous growth estimate that consumer spending, which fell 0.1 per cent in the Q2, suffered due to transport strikes hitting travel spending.

Unseasonably warm weather had also impacted energy spending, reports Reuters.

Meanwhile, corporate investment rose 1.2 per cent although firms’ profit margins fell to 31.5 per cent from 32 per cent in the first quarter, as productivity slipped while wages rose slightly.

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