In the second quarter of the year, the real GDP of the economy maintained its growth trajectory with a steady increase of 0.3 percent, mirroring the growth rate of the previous quarter. Year-over-year, the GDP grew by 1.1 percent, albeit at a slightly slower pace compared to the 1.46 percent rise seen in the prior quarter.

A key driver of this growth was the final domestic demand, which picked up slightly, contributing plus 0.1 percentage points to GDP growth, an improvement from the stagnant first quarter. This uptick was largely due to a modest recovery in gross fixed capital formation, which edged up by 0.1 percent following a 0.4 percent decline previously. Household consumption remained stable, showing no change from the previous quarter's slight decrease.

Foreign trade also played a crucial role, contributing 0.2 percentage points to GDP growth. This was supported by stable imports and dynamic export performance, which grew by 0.6 percent, following a 0.7 percent rise in the first quarter. However, changes in inventories had no impact on GDP growth for the second consecutive quarter.

Overall, the second quarter real GDP numbers displayed a balanced economic growth pattern, driven by slight improvements in domestic demand and strong export activity. The French RPI now stands at 6 and the RPI-P at 4. Both readings show overall economic activity modestly outperforming market forecasts.

Second-quarter GDP in France is expected to increase a quarterly 0.2 percent to match the first quarter's modest pace.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. The flash estimate, released a relatively short 4-5 weeks after the end of the reference quarter, is an effort to speed up delivery of key economic data. In contrast to most European flash releases, the French version provides an early look at the GDP expenditure components.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data, which follow the international classification system (SNA93), are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anaemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower. Currency traders prefer healthy growth and higher interest rates. Both lead to increased demand for a local currency. However, inflationary pressures put pressure on a currency regardless of growth.