In Q2 2014, French GDP held steady and households’ purchasing power increased (+0.5%)Quarterly national accounts - detailed figures - 2nd quarter 2014

In Q2 2014, as in Q1, French gross domestic product (GDP) in volume terms* remained steady. The previous release (august 14th, 2014) is thus overall confirmed.

Informations rapides
No 222
Paru le : 23/09/2014
Prochaine parution le : 22/12/2017 at 08:45 - third quarter 2017

In Q2 2014, as in Q1, French gross domestic product (GDP) in volume terms* remained steady. The previous release (august 14th, 2014) is thus overall confirmed.

Households’ consumption expenditure upturned (+0.4% after –0.6%), while total gross fixed capital formation (GFCF) remained depressed (–1.1% after –0.9%). All in all, final domestic demand (excluding changes in inventories) slightly increased and contributed for +0.1 points to GDP evolution (after –0.4 points in Q1).

Imports decelerated (+0.4% after +0.8%), but slightly less than exports (+0.1% after +0.6%). Consequently, the foreign trade balance contributed negatively to activity (–0.1 points). Finally, changes in inventories had a neutral contribution to GDP growth (0.0 points, after +0.5 points in Q1).

Household’s purchasing power rose by 0.5%

Household’s gross disposable income (GDI) decelerated strongly in Q2 2014 (+0.5% after +1.3%). Wages earned by households slightly slowed (+0.4% after +0.5%), notably because of the deceleration of the average wage per capita paid by non-financial corporations (+0.3% after +0.5%). Social benefits also decelerated (+0.3% after +0.6%). Taxes on income and wealth, which had markedly dropped in Q1 (–4.3%) after a strong H2 2013, remained fairly stable in Q2 (–0.5%).

Graph1 – GDP and its main components

Tab1 – Goods and services:supply and uses chain-linked volumes

percentage change from previous period,working-day and seasonally adjusted data
Goods and services:supply and uses chain-linked volumes
2013 Q3 2013 Q4 2014 Q1 2014 Q2 2013 2014 (ovhg)
GDP -0.1 0.2 0.0 0.0 0.4 0.3
Imports 0.6 0.4 0.8 0.4 1.9 2.2
Household' consumption *expenditure -0.1 0.2 -0.6 0.4 0.3 0.0
General government's *consumption expenditure 0.3 0.6 0.4 0.4 2.0 1.6
GFCF -0.3 -0.1 -0.9 -1.1 -0.8 -1.9
*of which Non financial corporated and unincorporated enterprises 0.2 0.8 -0.6 -0.7 -0.6 -0.4
Households -1.8 -2.1 -2.7 -2.5 -3.1 -6.9
General government 0.3 -0.4 0.1 -0.7 1.1 -0.4
Exports -0.6 1.5 0.6 0.1 2.4 2.2
Contributions :        
Internal demand excluding inventory changes 0.0 0.2 -0.4 0.1 0.4 -0.1
Inventory changes 0.3 -0.3 0.5 0.0 -0.2 0.4
Net foreign trade -0.4 0.3 0.0 -0.1 0.1 0.0

    Tab2 – Sectoral accounts

    percentage change from previous period,working-day and seasonally adjusted data
    Sectoral accounts
    2013 Q3 2013 Q4 2014 Q1 2014 Q2 2013 2014 (ovhg)
    Profit ratio of NFC* (level) 29.5 29.4 29.8 29.3 29.8  
    Household purchasing power -0.3 -0.3 0.9 0.5 0.0 1.0
    • *NFC: non-financial corporations

    Tab3 – Production, Consumption and GFCF : main components

    level, data WDA-SA
    Production, Consumption and GFCF : main components
    2013 Q3 2013 Q4 2014 Q1 2014 Q2 2013 2014 (ovhg)
    Production of branches -0.3 0.2 0.2 -0.1 0.5 0.4
    Goods -1.4 -0.2 0.4 -0.4 -0.2 -0.4
    Manufactured Industry -1.4 0.1 0.8 -0.9 -0.6 0.0
    Construction -0.5 -0.3 -1.5 -1.7 -1.2 -3.1
    Market services 0.2 0.4 0.3 0.2 0.9 1.0
    Non-market services 0.3 0.4 0.4 0.3 1.5 1.3
    Household consumption -0.1 0.2 -0.6 0.4 0.3 0.0
    Food products 0.5 0.9 -1.0 0.9 0.1 0.3
    Energy -3.7 -1.4 -3.9 3.4 0.8 -4.1
    Engineered goods 0.7 1.2 0.0 -0.2 -1.0 1.2
    Services 0.1 0.1 0.2 0.1 0.6 0.5
    GFCF -0.3 -0.1 -0.9 -1.1 -0.8 -1.9
    Manufactured goods 1.0 0.3 -0.4 -0.6 -0.9 -0.3
    Construction -0.8 -0.7 -1.8 -2.1 -1.6 -4.2
    Market services -0.3 0.3 0.0 0.1 0.3 0.4

      Tab4 – Households’ disposable income and ratios of households’ account

      percentage change from previous period,working-day and seasonally adjusted data
      Households’ disposable income and ratios of households’ account
      2013 Q3 2013 Q4 2014 Q1 2014 Q2 2013 2014 (ovhg)
      HDI -0.1 -0.3 1.3 0.5 0.6 1.4
      Household purchasing power -0.3 -0.3 0.9 0.5 0.0 1.0
      HDI by cu* (purchasing power) -0.5 -0.5 0.8 0.3 -0.6 0.4
      Adjusted HDI (purchasing power) -0.2 -0.1 0.8 0.5 0.5 1.1
      Saving rate (level) 15.1 14.6 15.9 15.9 15.1  
      Financial saving rate (level) 5.9 5.5 7.0 7.3 5.8  
      • *cu: consumption unit

      Tab5 – Ratios of non-financial corporations’ account

      percentage change from previous period,working-day and seasonally adjusted data
      Ratios of non-financial corporations’ account
      2013 Q3 2013 Q4 2014 Q1 2014 Q2 2013
      Profit share 29.5 29.4 29.8 29.3 29.8
      Investment ratio 22.6 22.8 22.6 22.5 22.6
      Savings ratio 16.7 17.1 17.0 17.0 17.1
      Self-financing ratio 73.6 75.3 75.2 75.5 75.7

        Tab6 – Expenditure, receipts and net borrowing of public administrations

        level, data WDA-SA
        Expenditure, receipts and net borrowing of public administrations
        2013 Q3 2013 Q4 2014 Q1 2014 Q2 2013
        In billions of euros      
        Total expenditure 303.3 305.0 307.7 308.9 1207.7
        Total receipts 281.8 284.1 286.0 285.1 1120.4
        Net lending (+) or borrowing (-) -21.5 -20.9 -21.7 -23.7 -87.2
        In % of GDP      
        Net lending (+) or borrowing (-) -4.1 -3.9 -4.1 -4.4 -4.1

          In Q2 2014, consumption prices stability (0.0% after +0.3% in Q1) attenuated the deceleration of households’ purchasing power, which rose by 0.5% (after +0.9%). Measured per consumption unit, households’ purchasing power increased by 0.3% (after +0.8%).

          Household consumption in value rose at a rate which is close to the HDI growth (+0.4% after –0.2%). Therefore the saving ratio is also stable, at 15.9%.

          Non financial corporations’ profit ratio decreased by 0.5 points at 29.3%

          In Q2 2014, non financial corporations’ value added declined (–0.4% in value after +0.1%). Wages paid (including social contributions) decelerated sharply but increased again: +0.2% after +0.7%. In Q2, subsidies on production slowed after an increase in Q1 following the implementation of the CICE. As a result, non financial corporations’ margin rate droped by 0.5 points to 29.3%.

          In Q2, general government deficit represented 4.4% of GDP

          In Q2, general government deficit requirement was up by 0.3 points of GDP, from 4.1% to 4.4% of GDP. Receipts declined (–0.3% after +0.7% in Q1) notably because of lower receipts from corporate taxes, while expenditures slowed (+0.4% after +0.9%) as the strong Q1 increase was linked to the establishment of the CICE.

          This publication includes the new estimation of the general government deficit for 2013, of 4.1% of GDP against 4.2% previously. This revision contributes to the revision of the deficit of Q1 2014 (from 4.4% to 4.1% of GDP). The quarterly general government deficit estimation is not merely accounting data but statistical data which may be revised in future publications.

          Documentation

          Methodology (pdf, 140 Ko)