France GDP Growth Confirmed; Inflation Accelerates
November 28 2019 - 11:25PM
RTTF2
France's economy expanded as initially estimated in the third
quarter and consumer price inflation accelerated in November driven
by food and services costs, official data showed Friday.
Gross domestic product climbed 0.3 percent sequentially, the
same pace of growth as seen in the second quarter. The rate matched
the estimate published on October 30.
The growth was driven by consumption and investment, while
exports remained weak. Household and government spending grew 0.4
percent and 0.5 percent, respectively.
Gross fixed capital formation climbed 1.2 percent. Exports fell
0.1 percent, while imports grew 0.7 percent.
Consumer price inflation rose to 1 percent in November, as
expected, from 0.8 percent in October, provisional estimate from
Insee showed. Final data is due on December 12.
Food prices grew 2.1 percent and services cost climbed 1.3
percent, while energy prices were down 0.7 percent.
On a monthly basis, consumer prices edged up 0.1 percent after
staying flat a month ago. Economists had forecast prices to remain
unchanged in November.
Inflation, based on the harmonized index of consumer prices,
climbed to 1.2 percent from 0.9 percent in October and exceeded the
forecast of 1.1 percent. Month-on-month, the HICP gained 0.1
percent, offsetting a 0.1 percent fall in October. The index was
expected to remain flat on month.
Another report showed that producer prices in domestic market
fell 0.1 percent on month, taking the annual decline to 1.4 percent
in October.
In October, household consumption recovered on manufactured
goods spending and food product purchases. Household spending
gained 0.2 percent, reversing a 0.3 percent drop in September.
Nonetheless, this was slightly slower than the expected 0.3 percent
increase.
Energy consumption fell 1.5 percent, while manufactured goods
purchases advanced 0.3 percent and food product purchases moved up
0.8 percent.
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