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France's economy grew by 0.1% in the third quarter.
Economy
France's economy grew by just 0.1% in the third quarter,
according to estimates published by the Bank of France on Monday. The services sector offset declines in manufacturing, construction, and agriculture during this period.
The Eurozone's second-largest economy showed a slight improvement compared to the previous quarter, when growth had stagnated. The Bank of France kept its estimate unchanged from earlier forecasts.
The central bank's monthly survey of 8,500 business leaders showed that manufacturing output continued to rise in September, albeit at a slower pace than companies had anticipated. Demand remained robust in the aerospace and electrical equipment sectors, with the latter benefiting from data center construction.
Construction activity saw minimal growth, supported by the resumption of work on sites delayed by summer heatwaves. Order books remained thin, particularly in the single-family housing segment.
Companies reported pressure from rising costs and weak sales. Prices for industrial raw materials—including energy, fuel, and metals—surged in September. Businesses passed on only a portion of these price increases to consumers.
Liquidity conditions deteriorated in both the manufacturing and services sectors. Restaurants recorded weak demand, while professional services firms noted longer payment periods.
Uncertainty among business leaders increased in September, reversing a steady decline observed since March. Fuel prices were cited as a primary concern. A number of companies are postponing projects, and households are becoming more cautious with their spending, the central bank reported. Enterprises expect an acceleration in industrial production in October; however, a sharp drop in vehicle output is forecast due to temporary plant shutdowns caused by component shortages. Activity in the services sector is expected to continue growing, albeit at a slower pace, while construction output is projected to remain broadly stable.
INSEE, the national statistical agency, will release preliminary third-quarter GDP data on October 30.