French Economy Contracts as Private-Sector Spending Falters

Published September 26th, 2008 - 11:08 GMT
Al Bawaba
Al Bawaba

French 2Q GDP growth was confirmed at -0.3% QoQ and 1.1% YoY, in line with the preliminary number. Household consumption contracted again in the second quarter and a pick up on public expenditure could not counterbalance the negative impact from consumption and falling investment. Exports also declined sharply. Data hold no real surprises and are too backward looking to change the growth and interest rate outlook.