French GDP increased by 0.3% in Q1 2017Quarterly national accounts - first estimate - first quarter 2017

In Q1 2017, GDP in volume terms* slowed down: +0.3%, after +0.5% in Q4 2016. Households' consumption expenditure stalled (+0.1% after +0.6%). However, total gross fixed capital formation (GFCF) accelerated again (+0.9% after +0.6%). All in all, final domestic demand excluding inventory barely slowed: it contributed to GDP growth for +0.4 points after +0.5 points in the previous quarter.

Exports fell back significantly (−0.7% after +1.4%) while imports accelerated (+1.5% after +0.8%). All in all, foreign trade balance weighed down on GDP growth: −0.7 points after +0.2 points in the previous quarter. Conversely, changes in inventories contributed positively (+0.6 points after −0.2 points).

Informations rapides
No 114
Paru le : 28/04/2017
Prochaine parution le : 31/10/2017 at 07:30 - third quarter 2017

In Q1 2017, GDP in volume terms* slowed down: +0.3%, after +0.5% in Q4 2016. Households' consumption expenditure stalled (+0.1% after +0.6%). However, total gross fixed capital formation (GFCF) accelerated again (+0.9% after +0.6%). All in all, final domestic demand excluding inventory barely slowed: it contributed to GDP growth for +0.4 points after +0.5 points in the previous quarter.

Exports fell back significantly (−0.7% after +1.4%) while imports accelerated (+1.5% after +0.8%). All in all, foreign trade balance weighed down on GDP growth: −0.7 points after +0.2 points in the previous quarter. Conversely, changes in inventories contributed positively (+0.6 points after −0.2 points).

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

Graph – GDP and its main components

  • Source: INSEE

Tab1 – GDP and its main components: chain-linked volumes

percentage change from previous period,working-day and seasonally adjusted data
GDP and its main components: chain-linked volumes
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2016 2017 (ovhg)
GDP -0.1 0.2 0.5 0.3 1.1 0.7
Imports -1.5 2.6 0.8 1.5 3.5 3.0
Household consumption *expenditure 0.2 0.1 0.6 0.1 1.8 0.7
General government's *consumption expenditure 0.4 0.3 0.3 0.4 1.4 0.8
GFCF 0.1 0.2 0.6 0.9 2.7 1.4
*of which Non-financial corporated and unincorporated enterprises 0.1 -0.1 0.9 1.3 3.9 1.9
Households 0.5 0.7 0.9 0.9 2.1 2.1
General government -0.7 0.2 -1.2 -0.4 -0.7 -1.4
Exports -0.1 0.8 1.4 -0.7 1.2 0.7
Contributions :        
Internal demand excluding inventory changes 0.2 0.2 0.5 0.4 1.9 0.9
Inventory changes -0.8 0.6 -0.2 0.6 -0.1 0.6
Net foreign trade 0.4 -0.6 0.2 -0.7 -0.7 -0.7
  • Source: INSEE

Total production slowed down

Production in goods and services slowed down in Q1 2017 (+0.3% after +0.6%). It fell back markedly in goods (−0.6% after +1.0%) while it increased almost at the same pace as in the previous quarter in services (+0.6% after +0.5%).

Electricity and gas production shrank. Output in manufactured goods also fell back (−0.5% after +0.7%), mainly due to the coke and refined petroleum branch and to a slowdown in transport equipment. By contrast, production accelerated in construction (+0.6% after +0.2%) and increased in market services almost at the same pace as in the previous quarter (+0.6% after +0.7%).

Household consumption was sluggish

Household consumption expenditure stalled in Q1 2017 (+0.1% after +0.6%): a sharp downturn in goods (−0.4% after +1.0%) dominated a slight acceleration in services (+0.5% after +0.3%).

Particularly, expenditure on energy fell back strongly (−3.8% after +3.7%): temperatures in winter 2017 were rather mild for the season, after a cool autumn 2016. Consumption of engineered goods decelerated (+0.4% after +1.0%), mainly due to a decline in vehicle purchases. By contrast, consumption of food products bounced back slightly (+0.3% after −0.3%).

Corporate investment accelerated, household investment kept on increasing

In Q1 2017, total GFCF rose again sharply (+0.9% after +0.6%), especially that of enterprises (+1.3% after +0.9%) and that of households (+0.9% after +0.9%). Investment in market services increased sharply (+1.2% after +0.7%), particularly in business services. GFCF in construction accelerated slightly (+0.3% after +0.1%), despite a fall in civil engineering. Similarly, investment in manufactured goods was slightly more dynamic (+1.5% après +1.3%), mainly due to equipment goods.

Foreign trade balance weighed down on GDP growth

Exports fell back in Q1 2017 (−0.7% after +1.4%), especially in transport equipment. At the same time, imports increased (+1.5% after +0.8%). Particularly, sales in refined petroleum products bounced back and those in other industrial goods increased vigorously. All in all, foreign trade balance weighed down on GDP growth by −0.7 points, after a contribution of +0.2 points in the previous quarter.

Changes in inventories increased significantly

In Q1 2017, the contribution of changes in inventories to GDP growth amounted to +0.6 points (after −0.2 points at the end of 2016). They increased especially in transport equipment and other industrial goods (chemicals, pharmaceuticals and plastic products).

Revisions

GDP growth estimate for Q4 2016 is revised upward by +0.1 points, from +0.4% to +0.5%. On average over the year, it is confirmed at +1.1% in 2016. Slight revisions in different aggregates offset each other; they are mainly due to the revision of indicators and to the update of seasonal adjustment coefficients.

Tab3 – Production, consumption and GFCF: main components

percentage change from previous period,working-day and seasonally adjusted data
Production, consumption and GFCF: main components
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2016 2017 (ovhg)
Production of branches -0.2 0.5 0.6 0.3 1.4 1.0
Goods -0.7 0.1 1.0 -0.6 0.1 0.0
Manufactured Industry -1.0 0.6 0.7 -0.5 0.6 0.0
Construction -0.4 0.9 0.2 0.6 0.7 1.1
Market services 0.0 0.7 0.7 0.6 2.2 1.5
Non-market services 0.3 0.2 0.2 0.3 1.2 0.6
Household consumption 0.2 0.1 0.6 0.1 1.8 0.7
Food products -0.5 0.8 -0.3 0.3 0.8 0.3
Energy 1.5 -1.4 3.7 -3.8 1.8 -1.5
Engineered goods 0.3 -0.9 1.0 0.4 2.4 0.8
Services -0.1 0.5 0.3 0.5 1.5 1.0
GFCF 0.1 0.2 0.6 0.9 2.7 1.4
Manufactured goods 0.1 -2.3 1.3 1.5 5.5 1.3
Construction -0.2 0.6 0.1 0.3 0.8 0.7
Market services 0.4 1.3 0.7 1.2 3.4 2.5
  • Source: INSEE

Tab2 – Sectoral accounts

percentage change from previous period,working-day and seasonally adjusted data
Sectoral accounts
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2015 2016
Profit ratio of NFCs* (level) 31.6 31.6 31.7   31.4 31.7
Households' purchasing power 0.3 0.6 0.1   1.6 1.9
  • *NFCs: non-financial corporations
  • Source: INSEE

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
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2015 2016
HDI 0.3 0.8 0.4   1.4 1.9
Household purchasing power 0.3 0.6 0.1 1.6 1.9
HDI by cu* (purchasing power) 0.2 0.5 0.0 1.2 1.4
Adjusted HDI (purchasing power) 0.3 0.6 0.2 1.6 1.8
Saving rate (level) 14.4 14.9 14.5 14.5 14.5
Financial saving rate (level) 5.3 5.8 5.3   5.5 5.5
  • *cu: consumption unit
  • Source: INSEE

Tab5 – Ratios of non-financial corporations' account

level (in percent), WDA-SA data
Ratios of non-financial corporations' account
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2015 2016
Profit share 31.6 31.6 31.7   31.4 31.7
Investment ratio 23.5 23.4 23.4   22.9 23.4
Savings ratio 20.6 20.8 20.7   19.7 20.8
Self-financing ratio 88.0 88.9 88.4   86.3 89.0
  • Source: INSEE

Tab6 – Expenditure, receipts and net borrowing of public administrations

level, WDA-SA data
Expenditure, receipts and net borrowing of public administrations
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2015 2016
In billions of euros          
Total expenditure 313.9 315.6 314.7   1244.0 1256.7
Total receipts 294.9 294.6 296.9   1165.3 1180.5
Net lending (+) or borrowing (-) -19.0 -21.1 -17.8   -78.7 -76.2
In % of GDP      
Net lending (+) or borrowing (-) -3.4 -3.8 -3.2   -3.6 -3.4
  • Source: INSEE

Documentation

Methodology (pdf, 140 Ko)