French economy grows 0.4% in Q3 2024, driven by consumer spending

According to preliminary data, the French economy grew by 0.4% quarter-on-quarter in Q3 2024, up from 0.2% in Q1 and surpassing market expectations of 0.3%.

French economy grows 0.4% in Q3 2024, driven by consumer spending

This marked the most substantial quarterly growth since Q4 2023, primarily driven by robust final domestic demand, which contributed 0.2 percentage points, boosted by the Paris Olympics. Household consumption increased by 0.5%, rebounding from stagnant levels in Q2, as spending on manufactured goods, food, and energy rose after declining for three consecutive quarters. Expenditure on information services also saw an acceleration. Government spending continued its upward trend, rising by 0.5%.

Trade impacts GDP as exports and imports decline; fixed investment drops

On the trade side, exports fell by 0.5%, while imports decreased by 0.7%, contributing slightly positively to GDP. Fixed investment, however, experienced a more profound decline of 0.8%, attributed to reduced spending on manufactured goods and a slowdown in investment within the service sector. Year-over-year, the economy grew by 1.3%, compared to a 1.1% increase in Q2.