| Actual | Previous | |
| Quarter over Quarter | 0.3% | 0.1% |
Highlights
The French economy grew 0.3 percent in the second quarter, helped by consumer and government expenditures following a 0.1 percent expansion in the first quarter.
Household consumption also increased 0.1 percent in the quarter, recovering some of the first quarter decline of 0.3 percent. Government spending rose 0.2 percent during the second quarter, matching the first quarter gain.
Net foreign trade subtracted 0.2 percent in the second quarter as imports rose 0.8 percent and exports 0.2 percent. Encouragingly, exports improved from the first quarter result of a 1.1 percent decline.
Gross fixed capital formation fell 0.3 percent in the second quarter, extending the first quarters 0.1 percent drop, with the biggest decline coming in manufacturing. The sector saw a 0.9 percent second quarter decline after 0.5 percent in the first quarter.
Inventories contributed 0.5 percent to GDP in the second quarter after 0.7 percent in the previous three months. This appears to be more of a case of buildup due to lack of demand that companies producing more to fill increased customer orders.
With the EU and US agreeing to a trade deal, businesses have a bit more clarity for their planning. The second quarter increase is a welcome result after the marginal first quarter economic performance. Still, there are inventories to work off and the dust still has to settle from the framework trade deal.