Key facts
- French economy contracted 0.1% in Q3, missing expectations of 0.1% growth.
- Exports fell 1.7% in Q3, driven by a 9.1% decline in transport equipment.
- Gross fixed capital formation decreased by 0.6% in Q3.
- Household consumption rose 0.4% in Q3.
- Energy consumption increased 1.2% in Q3.
The French economy unexpectedly contracted by 0.1% in the third quarter, missing analyst expectations for a 0.1% increase. This downturn was primarily driven by a significant slump in exports, which fell by 1.7% due to a sharp decline in transport equipment shipments, particularly aerospace. Investment also declined, with gross fixed capital formation falling 0.6%. Despite these headwinds, household consumption continued to grow by 0.4%, supported by increased spending on electric vehicles and a rebound in energy consumption.