23 December 2016
2016- n° 342In Q3 2016, households' purchasing power accelerated Quarterly national accounts - detailed figures - third quarter 2016
In Q3 2016, gross domestic product (GDP) in volume terms* recovered moderately: +0.2% after −0.1% in Q2.
Household consumption expenditure were virtually stable (+0.1% after 0.0%). Non-financial enterprises' GFCF stabilized (0.0% after −0.1%), while households' gross fixed capital formation (GFCF) accelerated again (+0.7% after +0.4%). Overall, final domestic demand (excluding inventory changes) sped up slightly: it contributed for +0.2 points to GDP growth in Q3 2016 after +0.1 points in the previous quarter.
Imports bounced back sharply (+2.5% after −1.5%). Exports accelerated (+0.7% after +0.1%), however less than imports. Overall, foreign trade balance contributed negatively to GDP growth (−0.6 points after +0.5 points). Conversely, changes in inventories contributed positively (+0.6 points after −0.8 points).
In Q3 2016, gross domestic product (GDP) in volume terms* recovered moderately: +0.2% after −0.1% in Q2.
Household consumption expenditure were virtually stable (+0.1% after 0.0%). Non-financial enterprises' GFCF stabilized (0.0% after −0.1%), while households' gross fixed capital formation (GFCF) accelerated again (+0.7% after +0.4%). Overall, final domestic demand (excluding inventory changes) sped up slightly: it contributed for +0.2 points to GDP growth in Q3 2016 after +0.1 points in the previous quarter.
Imports bounced back sharply (+2.5% after −1.5%). Exports accelerated (+0.7% after +0.1%), however less than imports. Overall, foreign trade balance contributed negatively to GDP growth (−0.6 points after +0.5 points). Conversely, changes in inventories contributed positively (+0.6 points after −0.8 points).
* This growth rate is seasonally and working-day adjusted; volumes are chain-linked previous-year-prices volumes.
graphiqueGraph – GDP and its main components
tableauTable1 – Goods and services: supply and uses chain-linked volumes
2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2015 | 2016 (ovhg) | |
---|---|---|---|---|---|---|
GDP | 0.3 | 0.6 | -0.1 | 0.2 | 1.2 | 1.0 |
Imports | 2.7 | 0.4 | -1.5 | 2.5 | 6.4 | 3.4 |
Household consumption *expenditure | 0.0 | 1.3 | 0.0 | 0.1 | 1.5 | 1.6 |
General government's *consumption expenditure | 0.4 | 0.4 | 0.4 | 0.3 | 1.4 | 1.4 |
GFCF | 1.2 | 1.2 | 0.0 | 0.3 | 0.9 | 2.6 |
*of which Non-financial corporated and unincorporated enterprises | 1.6 | 2.0 | -0.1 | 0.0 | 2.7 | 3.8 |
Households | 0.4 | 0.3 | 0.4 | 0.7 | -0.8 | 1.3 |
General government | 1.1 | -0.7 | -0.2 | 0.4 | -3.9 | 0.4 |
Exports | 0.5 | -0.5 | 0.1 | 0.7 | 6.0 | 0.6 |
Contributions: | ||||||
Internal demand excluding inventory changes | 0.3 | 1.0 | 0.1 | 0.2 | 1.3 | 1.8 |
Inventory changes | 0.6 | -0.2 | -0.8 | 0.6 | 0.2 | 0.1 |
Net foreign trade | -0.7 | -0.2 | 0.5 | -0.6 | -0.3 | -0.9 |
- Source: INSEE
tableauTable2 – Production, consumption and GFCF: main components
2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2015 | 2016 (ovhg) | |
---|---|---|---|---|---|---|
Production of branches | 0.5 | 0.6 | -0.2 | 0.5 | 1.3 | 1.2 |
Goods | 0.3 | 0.2 | -0.8 | 0.0 | 1.2 | -0.1 |
Manufactured Industry | 0.7 | 0.3 | -1.1 | 0.6 | 1.5 | 0.4 |
Construction | 0.6 | 0.4 | -0.3 | 0.9 | -2.2 | 0.7 |
Market services | 0.6 | 0.9 | -0.1 | 0.7 | 1.8 | 2.0 |
Non-market services | 0.3 | 0.4 | 0.3 | 0.3 | 1.0 | 1.2 |
Household consumption | 0.0 | 1.3 | 0.0 | 0.1 | 1.5 | 1.6 |
Food products | 0.4 | 0.4 | -0.6 | 0.9 | 1.2 | 0.9 |
Energy | -3.3 | 2.4 | 1.4 | -1.4 | 1.4 | 0.9 |
Engineered goods | -0.3 | 2.3 | 0.2 | -1.1 | 2.6 | 2.3 |
Services | 0.3 | 0.7 | -0.2 | 0.4 | 1.0 | 1.3 |
GFCF | 1.2 | 1.2 | 0.0 | 0.3 | 0.9 | 2.6 |
Manufactured goods | 3.3 | 2.6 | 0.1 | -2.3 | 2.1 | 5.5 |
Construction | 0.6 | 0.5 | -0.1 | 0.7 | -2.2 | 0.9 |
Market services | 0.7 | 1.1 | 0.1 | 1.4 | 4.4 | 3.0 |
- Source: INSEE
Households' purchasing power accelerated
Households' gross disposable income (GDI) accelerated in Q3 (+0.7% after +0.3%). Indeed, taxes on income and wealth fell back (−1.2% after +0.5%), due to a decrease in the income tax for median income households.
Besides, wages earned by households increased more than in Q2 (+0.6% after +0.4%), due to the rise in the average wage per capita paid by non-financial corporations (+0.3% after +0.1%). Lastly, social benefits in cash were a little more dynamic (+0.5% after +0.4% in Q2).
Furthermore, households' consumption prices increased in Q3 at the same slow pace than in Q2 (+0.1%).
Therefore households' purchasing power accelerated to the same extent than GDI in Q3 (+0.6% after +0.2%). Measured per consumption unit to assess it at an individual level, it had a similar profile (+0.5% after +0.1% in Q2).
As households' consumption in volume terms was sluggish, their savings ratio increased; it reached 14.9% of their GDI, after 14.5% in Q2.
tableauTable3 – Sectoral accounts
2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2015 | 2016 (ovhg) | |
---|---|---|---|---|---|---|
Profit ratio of NFC* (level) | 31.6 | 31.9 | 31.5 | 31.5 | 31.4 | |
Household purchasing power | 0.5 | 0.6 | 0.2 | 0.6 | 1.6 | 1.9 |
- *NFC: non-financial corporations
- Source: INSEE
tableauTable4 – Households' disposable income and ratios of households' account
2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2015 | 2016 (ovhg) | |
---|---|---|---|---|---|---|
HDI | 0.5 | 0.5 | 0.3 | 0.7 | 1.4 | 1.9 |
Household purchasing power | 0.5 | 0.6 | 0.2 | 0.6 | 1.6 | 1.9 |
HDI by cu* (purchasing power) | 0.4 | 0.5 | 0.1 | 0.5 | 1.2 | 1.5 |
Adjusted HDI (purchasing power) | 0.5 | 0.6 | 0.2 | 0.6 | 1.6 | 1.8 |
Saving rate (level) | 14.9 | 14.4 | 14.5 | 14.9 | 14.5 | |
Financial saving rate (level) | 5.9 | 5.6 | 5.5 | 5.9 | 5.5 |
- *cu: consumption unit
- Source: INSEE
Non-financial corporations' profit ratio was stable at 31.5%
In Q3 2016, apparent labour productivity fell back slightly whereas real wages increased a little, which weighed down on the profit ratio. Conversely, the hiring premium for SMEs has been ramped up. Overall, the profit ratio held steady at 31.5%.
tableauTable5 – Ratios of non-financial corporations' account
2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2015 | |
---|---|---|---|---|---|
Profit share | 31.6 | 31.9 | 31.5 | 31.5 | 31.4 |
Investment ratio | 23.1 | 23.3 | 23.4 | 23.4 | 22.9 |
Savings ratio | 20.0 | 21.1 | 20.4 | 20.4 | 19.7 |
Self-financing ratio | 86.5 | 90.8 | 87.2 | 87.4 | 86.3 |
- Source: INSEE
In Q3 2016, general government deficit increased anew
In Q3 2016, general government net borrowing rose anew, at 3.5% of GDP after 3.2%.
Expenditure accelerated (+0.7% after +0.3%), notably as an after-effect of the sale of new 4G frequencies in Q2 (registered as a lesser expenditure in national accounts).
Conversely, receipts slowed down in Q3 (+0.2% after +0.6%), notably because of tax measures alleviating income taxes.
tableauTable6 – Expenditure, receipts and net borrowing of public administrations
2015 Q4 | 2016 Q1 | 2016 Q2 | 2016 Q3 | 2015 | |
---|---|---|---|---|---|
In billions of euros | |||||
Total expenditure | 310.7 | 313.7 | 314.7 | 317.0 | 1242.8 |
Total receipts | 295.2 | 295.0 | 296.9 | 297.3 | 1166.3 |
Net lending (+) or borrowing (-) | -15.5 | -18.7 | -17.8 | -19.7 | -76.5 |
In % of GDP | |||||
Net lending (+) or borrowing (-) | -2.8 | -3.4 | -3.2 | -3.5 | -3.5 |
- Source: INSEE
Revisions
GDP growth rate in Q3 2016 is not revised (+0.2%) Vegetal production for 2016 is lowered again and many indicators have been updated, including quarterly data from balance of payments, which leads to slight revisions on past quarters.