economic activity stagnated in the second quarter in France, announced Friday, July 29 the Institut national de la statistique et des études économiques (INSEE). The evolution of the gross domestic product (GDP) was zero, while it was expected to rise 0.3%. INSEE has however slightly revised up growth in the first quarter to + 0.7% against + 0.6%.
The growth figure for the second quarter is “disappointing” , but not “does not affect the growth forecast of 1.5% in 2016″ , reacted the Ministry of Finance in a statement. “This is obviously primarily due to the exceptional growth of 1 st quarter, but also by one-off effects in the 2 th quarter, including strikes in refineries that have affected production “ says Bercy, but stressed that ” the French economy remains on a recovery momentum “.
“Fall of production in refineries’
already, over growth – that GDP growth in case of zero growth the rest of the year – totaled to 1.1%, according to INSEE. traditional growth engine in France, household consumption stagnated in the second quarter, after the first dynamic (+ 1.2%).
Food Consumer spending in particular have fallen significantly, 0.7% after 0.4% the first three months of the year, and consumer services fell by 0.1% against + 0.7%, “backlash after purchasing tickets Euro 2016 football in the first quarter, “ and the result of the ” shift of accommodation and food expenditures “, details INSEE.
capital expenditures for their part are folded by 0.4% after rising 1.3% in the first quarter. In detail, those companies declined 0.2% and general government, 1.7%
The total output of goods and services, also declined slightly (-. 0 , 2%). In particular, “the production of manufactured goods declined sharply ( – 1% after 0%) mainly due to the fall in production in refineries affected by industrial action in May and June, “, said INSEE.
in the construction sector, which was just starting to give signs of recovery, it dropped by 0.6%, after + 0.3% in the first quarter. Foreign trade – including a sharp decline in imports of manufactured goods and crude oil – has, however, contributed positively to GDP by 0.3