In Q2 2015, households' purchasing power and non-financial corporations' profit ratio were virtually stableQuarterly national accounts - detailed figures - 2nd Quarter 2015

In Q2 2015, French growth domestic product (GDP) in volume terms* was stable, after a 0.7% increase in Q1. The previous release (published on August 14th 2015) is overall unchanged.

Informations rapides
No 230
Paru le : 23/09/2015
Prochaine parution le : 22/12/2017 at 08:45 - third quarter 2017

In Q2 2015, French growth domestic product (GDP) in volume terms* was stable, after a 0.7% increase in Q1. The previous release (published on August 14th 2015) is overall unchanged.

Household final consumption expenditure decelerated sharply (0.0% after +0.9%). The decline of their housing investment got deeper (–1,5% after –1,2%) while non-financial corporations' gross fixed capital formation (GFCF) increased more slightly (+0.3% after +0.6%). All in all, final domestic demand (excluding changes in inventories) decelerated sharply and contributed for +0.1 points to GDP growth after +0.6 points in Q1.

Exports accelerated (+2.0% after +1.5%) while imports slowed (+0.5% after +2.1%). In fine, the foreign trade balance contributed positively to activity (+0.4 points after –0.2 points). On the contrary, changes in inventories contributed negatively to GDP growth (–0.5 points, after +0.3 points in Q1).

Households' purchasing power was virtually stable (–0.1%)

Households' gross disposable income (GDI) increased less significantly in Q2 (+0.3% after +1.0%). Wages earned by households decelerated (+0.3% after +0.7%), notably because of the slowdown of the average wage per capita paid by non-financial corporations (+0.1% after +0.8%). Taxes on income and wealth, which had markedly dropped in Q1 (–1.5%) following a strong Q4 2014, increased slightly in Q2 (+0.5%).

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

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
2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014 2015 (ovhg)
GDP 0.3 0.1 0.7 0.0 0.2 0.9
Imports 1.5 1.8 2.1 0.5 3.9 4.8
Household consumption *expenditure 0.4 0.2 0.9 0.0 0.6 1.3
General government's *consumption expenditure 0.5 0.5 0.4 0.4 1.5 1.4
GFCF -0.4 -0.3 0.0 -0.2 -1.2 -0.7
*of which Non-financial corporated and unincorporated enterprises 0.3 0.0 0.6 0.3 2.0 1.0
Households -1.1 -0.8 -1.2 -1.5 -5.3 -3.8
General government -2.4 -0.7 0.2 -0.1 -6.9 -2.3
Exports 1.1 2.9 1.5 2.0 2.4 5.8
Contributions :        
Internal demand excluding inventory changes 0.3 0.2 0.6 0.1 0.5 0.9
Inventory changes 0.2 -0.3 0.3 -0.5 0.2 -0.2
Net foreign trade -0.2 0.3 -0.2 0.4 -0.5 0.2

    Tab2 – Sectoral accounts

    percentage change from previous period,working-day and seasonally adjusted data
    Sectoral accounts
    2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014 2015 (ovhg)
    Profit ratio of NFC* (level) 29.5 29.8 31.2 31.1 29.5  
    Household purchasing power 0.5 0.0 1.1 -0.1 1.1 1.4
    • *NFC: non-financial corporations

    Tab3 – Production, consumption and GFCF: main components

    percentage change from previous period,working-day and seasonally adjusted data
    Production, consumption and GFCF: main components
    2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014 2015 (ovhg)
    Production of branches 0.5 0.1 0.8 -0.1 0.7 1.1
    Goods 1.0 -0.5 1.4 -0.8 0.1 0.9
    Manufactured Industry 1.0 -0.1 1.2 -0.7 0.3 1.0
    Construction -0.8 -0.7 -0.8 -1.1 -2.2 -2.8
    Market services 0.6 0.4 0.8 0.3 1.2 1.6
    Non-market services 0.3 0.3 0.4 0.4 1.3 1.1
    Household consumption 0.4 0.2 0.9 0.0 0.6 1.3
    Food products 0.0 0.2 0.2 0.8 0.2 1.1
    Energy 0.5 -1.7 3.7 -2.1 -5.7 1.6
    Engineered goods 0.5 0.5 1.7 -0.1 1.8 2.2
    Services 0.2 0.1 0.3 0.2 0.7 0.6
    GFCF -0.4 -0.3 0.0 -0.2 -1.2 -0.7
    Manufactured goods 0.1 -0.2 1.0 -0.1 1.3 0.8
    Construction -1.2 -0.7 -1.0 -1.2 -3.4 -3.4
    Market services 0.2 0.3 0.9 1.1 0.4 2.2

      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
      2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014 2015 (ovhg)
      HDI 0.4 -0.1 1.0 0.3 1.1 1.4
      Household purchasing power 0.5 0.0 1.1 -0.1 1.1 1.4
      HDI by cu* (purchasing power) 0.4 -0.1 1.0 -0.2 0.7 1.0
      Adjusted HDI (purchasing power) 0.5 0.1 1.0 0.0 1.3 1.4
      Saving rate (level) 15.2 15.0 15.2 15.2 15.1  
      Financial saving rate (level) 6.1 6.0 6.4 6.4 6.0  
      • *cu: consumption unit

      Tab5 – Ratios of non-financial corporations' account

      level (in percent), data WDA-SA
      Ratios of non-financial corporations' account
      2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014
      Profit share 29.5 29.8 31.2 31.1 29.5
      Investment ratio 23.1 23.0 22.7 22.8 23.1
      Savings ratio 17.4 18.3 19.3 19.5 17.4
      Self-financing ratio 75.3 79.9 85.1 85.3 75.2

        Tab6 – Expenditure, receipts and net borrowing of public administrations

        level, data WDA-SA
        Expenditure, receipts and net borrowing of public administrations
        2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014
        In billions of euros      
        Total expenditure 307.1 307.5 309.9 312.1 1226.5
        Total receipts 285.8 286.8 289.4 289.8 1142.6
        Net lending (+) or borrowing (-) -21.3 -20.7 -20.5 -22.4 -83.9
        In % of GDP      
        Net lending (+) or borrowing (-) -4.0 -3.9 -3.8 -4.1 -3.9

          Consumption prices bounced back in Q2 2015 (+0.4% after –0.1%), which amplified the slowdown in households' purchasing power: the latter was virtually stable (–0.1% after +1.1%). Measured per consumption unit, it even declined slighly: –0.2% after +1.0%.

          As households' consumption increased in volume terms at a pace close to their purchasing power, their saving ratio was stable in Q2, at 15.2%.

          Non-financial corporations' profit ratio was almost stable

          In Q1 2015, non-financial corporations' profit ratio had markedly increased (+1.4 points, from 29.8% to 31.2%), due to the decrease in social contributions and the increase in the rate of the tax credit for encouraging competitiveness and jobs (CICE). In Q2, their profit ratio was almost stable (–0.1 points, at 31.1%) because wages paid by non-financial corporations increased barely more than their added value.

          General government net borrowing increased by 0.3 points of GDP in Q2, and reached 4.1% after 3.8%. The receipts decelerated sharply (+0.1% after +0.9% in Q1) notably due to lower receipts from corporate taxes. By contrast, expenditures increased at a rate close to the previous quarter (+0.7% after +0.8%): government debt servicing accelerated, while social benefits and other transfers (including CICE) decelerated.

          Documentation

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