French economic growth picks up to 0.5% in third quarter

French economic growth accelerated in the third quarter, numbers on Friday confirmed, while consumer price inflation was steady this month.

According to Insee, the French economy grew 0.5% in the third quarter from the second, in line with a prior estimate. Growth picked up from 0.3% in the second quarter and 0.1% in the first. It represents the loftiest on-quarter gross domestic product improvement since the second quarter of 2023.

A first estimate for the fourth quarter is released on January 30.

Separate data on Friday showed consumer prices advanced 0.9% on-year in November. The Insee estimate showed the pace of consumer price growth was steady compared to October and eased from 1.3% in November 2024.

"The stability of inflation should be attributed to a deceleration in service prices, primarily driven by communication services, and to a sharper decline in manufactured goods prices. These effects should be, however, offset by a more moderate decrease in energy prices and a slight acceleration in food prices. Year-on-year, prices of tobacco should rise at the same rate as in October," Insee said.

On-month, consumer prices rose 0.1% in November from October. In October, prices also edged up 0.1% on-month.

On a harmonised basis, allowing for EU-wide comparison, the annual consumer price inflation rate was steady at 0.8% in November, where it stood in October. It had been expected to pick up to 1.0%, however, according to consensus cited by FXStreet.

Final data for November is released on December 12.

Producer prices, meanwhile, were flat on-month in October, after a 0.1% fall in September from August.

On-year, producer prices fell 0.8% in October, after edging up 0.1% in September.

Finally, data showed payroll employment was largely "stable" in the third quarter. Insee said 10,700 jobs were shed during the three months to September 30, after a 49,300 increase in the second quarter.

Payroll employment stands 0.2% below its level in the year prior, but is up 5.0% since the end of 2019, before the Covid-19 pandemic, Insee added.