Paris:The French economy unexpectedly contracted by 0.1% in the third quarter of 2026, falling short of the anticipated 0.3% growth, as revealed by preliminary official data.
According to Anadolu Agency – English, this slight decline followed a stagnant second quarter, as reported by the National Institute of Statistics and Economic Studies. A significant downturn in foreign trade was a major factor, subtracting 0.6 percentage points from the gross domestic product (GDP) growth after previously contributing the same amount in the prior quarter.
Exports saw a decrease of 1.7% between July and September, primarily due to a 9.1% fall in transport equipment shipments, especially in the aeronautics sector, along with a 7% decline in agricultural exports. Imports, on the other hand, remained relatively stable, increasing by just 0.1% following a 0.9% rise in the second quarter.
The total production of goods and services dropped by 0.1% during the quarter, with manufacturing output declining by 1.4%. This decrease was attributed to weak car manufacturing, poor summer harvests, and reduced power station availability amid heat waves. Construction output also saw a decline of 0.4%, whereas market services output increased by 0.3%, driven by a 1% growth in information and communication services.
Final domestic demand, excluding inventories, contributed 0.1 percentage points to growth, mirroring its performance in the second quarter. Household consumption growth picked up to 0.4% from 0.2% in the previous quarter, fueled by purchases of electric vehicles, a rebound in electricity spending, and recreational services. Public administration consumption rose by 0.3%, continuing its upward trend from a 0.4% increase in the second quarter.
In contrast, total investment, measured as gross fixed capital formation, decreased by 0.6% in the third quarter, following a 0.5% contraction in the previous quarter. Investment in manufactured goods fell by 1.9% due to declines in transport equipment, while construction investment decreased by 0.5%.
Changes in inventories provided a positive contribution of 0.4 percentage points to GDP growth, largely influenced by aerospace products after a significant drawdown in the second quarter.