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In Q2 2016, households' purchasing power increased slightly and corporations' profit ratio decreased

Quarterly national accounts - Detailed figures Q2 2016

In Q2 2016, gross domestic product (GDP) in volume terms* declined slightly: -0.1% after +0.7% in the first quarter.

Household final consumption expenditure edged down in Q2 2016 (-0.1% after +1.1%), as well as total gross fixed capital formation (GFCF) (-0.2% after +1.3%). With public expenditures, final domestic demand (excluding inventory changes) made a zero contribution to GDP growth in Q2 2016 (after +0.9 points in Q1 2016). Imports decreased sharply (-1.8% after 0.2%) while exports increased slightly (+0.2% after -0.4%). Thus, foreign trade balance contributed positively to GDP growth (+0.6 points after -0.2 points).Conversely, changes in inventories contributed negatively to GDP growth: -0.7 points after -0.1 points in Q1.

GDP and its main components

GDP and its main components

Source: INSEE

Goods and services:
percentage change from previous period,working-day and seasonally adjusted data
Source: Insee
2015 Q3 2015 Q4 2016 Q1 2016 Q2 2015 2016 (ovhg)
GDP 0.4 0.4 0.7 -0.1 1.2 1.1
Imports 1.7 2.2 0.2 -1.8 6.4 1.5
Household consumption *expenditure 0.5 0.0 1.1 -0.1 1.5 1.3
General government's *consumption expenditure 0.3 0.4 0.4 0.4 1.4 1.3
GFCF 0.7 1.2 1.3 -0.2 0.9 2.3
*of which Non-financial corporated and unincorporated enterprises 0.4 1.6 2.1 -0.4 2.7 3.4
Households 0.0 0.2 0.1 -0.3 -0.8 0.1
General government 2.7 1.5 0.1 0.7 -3.9 2.2
Exports -0.2 0.6 -0.4 0.2 6.0 0.5
Contributions :        
Internal demand excluding inventory changes 0.5 0.4 0.9 0.0 1.3 1.5
Inventory changes 0.5 0.5 -0.1 -0.7 0.2 -0.1
Net foreign trade -0.6 -0.5 -0.2 0.6 -0.3 -0.3

Households' purchasing power slowed down

In nominal terms, households' gross disposable income (GDI) slowed down in Q2 (+0.3% after +0.5%), mainly due to the deceleration in wages received by households (+0.4% after +0.8%). Besides, social benefits in cash slowed down slightly (+0.3% after +0.4%). However, taxes on income and wealth were less dynamic (+0.4% after +0.7%), as well as social contributions paid (0.0% after +0.9%), which moderated slightly the GDI overall deceleration.

Household consumption prices accelerated slightly in Q2 (+0.1% after -0.1%), hence households' purchasing power kept on increasing, but slowed down more sharply than GDI (+0.2% after +0.6% in Q1). Measured per consumption unit, it slowed down to the same extent (+0.1% after +0.5%).

In Q2 2016, household consumption declined while their purchasing power improved, so that their savings ratio increased: 14.8% after 14.5%.

* This growth rate is seasonally and working-day adjusted; volumes are chain-linked previous-year-prices volumes.

Sectoral accounts
percentage change from previous period,working-day and seasonally adjusted data
*NFC: non-financial corporations
Source: INSEE
2015 Q3 2015 Q4 2016 Q1 2016 Q2 2015 2016 (ovhg)
Profit ratio of NFC*(level) 31.4 31.6 32.1 31.7 31.4  
Household purchasing power 0.8 0.5 0.6 0.2 1.6 1.6
Production, consumption and GFCF: main components
percentage change from previous period,working-day and seasonally adjusted data
Source: INSEE
2015 Q3 2015 Q4 2016 Q1 2016 Q2 2015 2016 (ovhg)
Production of branches 0.4 0.5 0.7 -0.2 1.3 1.1
Goods 0.5 0.4 0.2 -0.5 1.2 0.2
Manufactured Industry 0.5 0.6 0.1 -0.9 1.5 0.0
Construction -0.5 0.5 0.2 -0.7 -2.2 -0.3
Market services 0.5 0.7 1.0 -0.1 1.8 1.7
Non-market services 0.3 0.4 0.4 0.3 1.0 1.1
Household consumption 0.5 0.0 1.1 -0.1 1.5 1.3
Food products -0.1 0.4 0.4 -0.8 1.2 0.2
Energy 2.1 -2.5 1.8 1.6 1.4 1.5
Engineered goods 1.0 0.0 2.2 0.1 2.6 2.8
Services 0.4 0.3 0.8 -0.2 1.0 1.1
GFCF 0.7 1.2 1.3 -0.2 0.9 2.3
Manufactured goods 3.1 3.7 3.3 0.8 2.1 7.8
Construction -0.4 0.4 0.3 -0.6 -2.2 -0.2
Market services 0.6 0.8 1.2 -0.4 4.4 2.1
Households' disposable income and ratios of households' account
percentage change from previous period,working-day and seasonally adjusted data
*cu: consumption unit
Source: INSEE
2015 Q3 2015 Q4 2016 Q1 2016 Q2 2015 2016 (ovhg)
HDI 0.7 0.6 0.5 0.3 1.4 1.6
Household purchasing power 0.8 0.5 0.6 0.2 1.6 1.6
HDI by cu* (purchasing power) 0.7 0.4 0.5 0.1 1.2 1.2
Adjusted HDI (purchasing power) 0.7 0.5 0.6 0.3 1.6 1.5
Saving rate (level) 14.5 15.0 14.5 14.8 14.5  
Financial saving rate (level) 5.6 5.9 5.7 5.8 5.5  

Non-financial corporations' profit ratio decreased by 0.4 points in Q2

In Q2 2016, non-financial corporations' profit ratio decreased slightly, from 32.1% to 31.7%. Indeed, apparent labour productivity stepped back in line with added value, and the rebound in the oil price deteriorated the terms of trade. Meanwhile, the decrease in the contributions for family allowance since April within the framework of the Pacte de responsabilité et de solidarité limited the overalldecrease.

Ratios of non-financial corporations' account
level (in percent), data WDA-SA
Source: INSEE
2015 Q3 2015 Q4 2016 Q1 2016 Q2 2015
Profit share 31.4 31.6 32.1 31.7 31.4
Investment ratio 22.8 23.0 23.2 23.3 22.9
Savings ratio 20.0 20.0 21.3 20.6 19.7
Self-financing ratio 87.6 86.9 92.0 88.8 86.3

In Q2, general government deficit decreased

In Q2 2016, general government net borrowing decreased by 0.2 GDP points and reached 3.2% of GDP (after 3.4%). Sales of 4G frequencies contributed for 0.1 GDP points to the decrease in the general government deficit.

Receipts bounced back in Q2 (+0.6% after -0.1%) thanks to dynamic corporation taxes. However, this rebound was moderated by the downturn in social contributions.

Expenditure slowed down in Q2 (+0.2% after +0.9%) after a dynamic first quarter when the French contribution to the European Union budget went back to normal.

Expenditure, receipts and net borrowing of public administrations
level, data WDA-SA
Source: INSEE
2015 Q3 2015 Q4 2016 Q1 2016 Q2 2015
In billions of euros      
Total expenditure 311.4 310.5 313.3 313.9 1242.9
Total receipts 291.3 295.0 294.6 296.4 1166.4
Net lending (+) or borrowing (-) -20.1 -15.4 -18.6 -17.5 -76.5
In % of GDP      
Net lending (+) or borrowing (-) -3.7 -2.8 -3.4 -3.2 -3.5

Revisions

The estimate of the GDP growth in Q2 2016 has been revised downwards, at -0.1% instead of 0.0% initially. This revision is mainly due to the integration of indicators not available for the second estimate, and to the updating of the seasonal adjustment parameters.

Informations Rapides

n° 252 - September 23, 2016

Quarterly national accounts - detailed figures - 2nd Quarter 2016

Next issue December 23, 2016 08:45 - 3rd Quarter 2016

For further information

  • Historical data are available on the BDM: G1540, G1548.