French GDP increased by 0,5% in the third quarter, confirms INSEE.

GDP growth, which "accelerated" in the third quarter, was driven in particular by a rise in exports (+3,2%), according to the National Institute of Statistics. Among exports, INSEE noted a "very sharp increase in exports of transport equipment (+13,4%)."

"Overall, the contribution of foreign trade to GDP growth is positive," the institute explains, as is "final domestic demand excluding inventories," which contributes 0,3 points to GDP growth this quarter.

On the other hand, changes in inventories had a negative impact on growth.

Meanwhile, household consumption "continues to increase slightly, thanks to a rebound in energy spending (+1,3%) which compensates for the decline in spending on food products (-1%).

But their purchasing power "is falling sharply", warns INSEE, with a drop of 0,4% in the third quarter, under the combined effect of the slowdown in social benefits, taxes paid which "accelerate slightly" (+1,4%), and a consumer price which "starts to rise again" (+0,5%).

Mechanically, the household savings rate is down, at 18,4% in the third quarter compared to 18,7% in the previous quarter.

At the heart of the debates on the finance bill still underway in Parliament, public spending increased by 2,6 billion euros in the third quarter, but less than public revenue (+2,7 billion euros), which increased "due to the rebound in income and wealth taxes".

"Thus, the financing needs of public administrations remain almost stable in the third quarter," says INSEE.

Illustrative image of the article via Depositphotos.com.