29 November 2019
N° 2019-307

In Q3 2019, the purchasing power of households’ incomes accelerated at +0.6 %Quarterly national accounts - detailed figures - third quarter 2019

In Q3 2019, GDP in volume terms grew at the same pace as in the two previous quarter: +0.3%.

Household consumption expenditures accelerated (+0.4% after +0.2%), while total gross fixed capital formation remained dynamic (GCFC: +1.2% after +1.3%). Overall, final domestic demand excluding inventory changes contributed 0.6 points to GDP growth, after 0.5 points in the previous quarter.

Imports bounced back (+0.7% after −0.3%) while exports went down (−0.1% after −0.2%). All in all, foreign trade balance contributed negatively to GDP growth: −0.2 points, after 0.0 points in the previous quarter. Meanwhile, changes in inventories contributed negatively to GDP growth (−0.1 points after −0.2 points).

Informations rapides
No 307
Paru le : Paru le 29/11/2019
Prochaine parution le : 28/02/2020 at 08:45 - fourth quarter 2019
Informations rapides  No 307 - November 2019

In Q3 2019, GDP in volume terms grew at the same pace as in the two previous quarter: +0.3%.

Household consumption expenditures accelerated (+0.4% after +0.2%), while total gross fixed capital formation remained dynamic (GCFC: +1.2% after +1.3%). Overall, final domestic demand excluding inventory changes contributed 0.6 points to GDP growth, after 0.5 points in the previous quarter.

Imports bounced back (+0.7% after −0.3%) while exports went down (−0.1% after −0.2%). All in all, foreign trade balance contributed negatively to GDP growth: −0.2 points, after 0.0 points in the previous quarter. Meanwhile, changes in inventories contributed negatively to GDP growth (−0.1 points after −0.2 points).

GDP and its main components

GDP and its main components ()
Consumption GFCF Inventory changes Net foreign trade GDP
2016-Q1 0.67 0.21 -0.35 0.1 0.6
2016-Q2 0.18 -0.04 -0.67 0.23 -0.3
2016-Q3 0.09 0.11 0.41 -0.37 0.3
2016-Q4 0.6 0.21 -0.41 0.2 0.6
2017-Q1 0.19 0.52 0.78 -0.7 0.8
2017-Q2 0.29 0.21 -0.57 0.76 0.7
2017-Q3 0.43 0.28 0.11 -0.13 0.7
2017-Q4 0.13 0.19 0.01 0.41 0.7
2018-Q1 0.12 -0.01 -0.01 0.1 0.2
2018-Q2 -0.08 0.19 0.12 -0.04 0.2
2018-Q3 0.23 0.22 -0.4 0.28 0.3
2018-Q4 0.33 0.18 -0.23 0.16 0.4
2019-Q1 0.21 0.12 0.25 -0.31 0.3
2019-Q2 0.23 0.29 -0.2 0.03 0.3
2019-Q3 0.32 0.28 -0.08 -0.25 0.3

GDP and its main components

  • Source: INSEE.

GDP and its main components

percentage change from previous period, working-day and seasonally adjusted data
GDP and its main components (percentage change from previous period, working-day and seasonally adjusted data)
2018 Q4 2019 Q1 2019 Q2 2019 Q3 2018 2019 (ovhg)
GDP 0.4 0.3 0.3 0.3 1.7 1.2
Imports 1.3 1.1 -0.3 0.7 1.2 2.3
Household consumption expenditure 0.4 0.3 0.2 0.4 0.9 1.2
General government’s consumption expenditure 0.5 0.1 0.5 0.5 0.8 1.2
GFCF 0.8 0.5 1.3 1.2 2.8 3.4
Of which non-financial corporations and unincorporated enterprises 1.1 0.5 1.1 1.4 3.9 3.9
Households -0.2 0.2 1.7 0.7 2.0 1.9
General government 1.2 0.9 1.3 1.0 2.4 3.9
Exports 1.8 0.1 -0.2 -0.1 3.5 1.8
Contributions:
Internal demand excluding inventory changes 0.5 0.3 0.5 0.6 1.3 1.7
Inventory changes -0.2 0.3 -0.2 -0.1 -0.2 -0.3
Net foreign trade 0.2 -0.3 0.0 -0.2 0.7 -0.2
  • This growth rate is seasonally and working-day adjusted; volumes are chain-linked previous-year-prices volumes.
  • Source: Insee

Production, consumption and GFCF: main components

percentage change from previous period, working-day and seasonally adjusted data
Production, consumption and GFCF: main components (percentage change from previous period, working-day and seasonally adjusted data)
2018 Q4 2019 Q1 2019 Q2 2019 Q3 2018 2019 (ovhg)
Production of branches 0.6 0.4 0.4 0.3 2.0 1.6
Goods 0.2 0.3 -0.2 -0.5 0.6 0.1
Manufactured industry 0.2 0.4 -0.5 -0.6 0.6 0.2
Construction 0.6 0.7 0.5 0.5 1.8 2.1
Market services 0.7 0.5 0.7 0.6 3.1 2.4
Non-market services 0.5 0.3 0.4 0.4 0.8 1.2
Household consumption 0.4 0.3 0.2 0.4 0.9 1.2
Food products -0.2 -1.1 -0.1 -0.6 -1.4 -1.9
Energy 0.2 0.5 1.0 0.0 -1.0 0.4
Engineered goods -0.2 0.7 -0.4 1.5 0.7 1.1
Services 0.6 0.5 0.4 0.4 1.9 1.7
GFCF 0.8 0.5 1.3 1.2 2.8 3.4
Manufactured goods 0.1 1.3 0.9 1.3 2.1 3.7
Construction 0.6 0.7 0.9 0.7 1.5 2.3
Market services 1.4 -0.2 1.9 1.7 4.9 4.5
  • Source: Insee

The purchasing power of households’ gross disposable income grew due to wages and social benefits

Households’ gross disposable income (GDI) accelerated in Q3 (+0.8% after +0.2%), following the wages received by households. These wages clearly accelerated (+0.8% after +0.3%), after having decelerated during Q2 2019 in the aftermath of the special bonuses paid by some companies. Social benefits in cash accelerated too (+0.7% after +0.2%). Social contributions paid by households remained dynamic (+0.5% after +0.5%) while taxes on income and wealth remained steady (+0.1% after +0.7%).

Households’ consumption prices decelerated (+0.2% after +0.4%) and the purchasing power of households’ GDI bounced back (+0.6% after −0.2%). When measured by consumption unit to bring it to an individual level, it also bounced back (+0.5% after −0.4%).

In Q3 2019, households’ consumption in volume terms increased (+0.4% after +0.2%) at a slower rate than the purchasing power. As a consequence, households’ savings rate increased: it stands at 14.8% after 14.6% in Q2 2019.

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 (percentage change from previous period, working-day and seasonally adjusted data)
2018 Q4 2019 Q1 2019 Q2 2019 Q3 2018 2019 (Q2 ovhg)
HDI 1.3 0.8 0.2 0.8 2.7 3.0
HDI (purchasing power) 1.1 0.6 -0.2 0.6 1.2 1.9
HDI by cu* (purchasing power) 0.9 0.5 -0.4 0.5 0.7 1.4
Adjusted HDI (purchasing power) 0.9 0.5 -0.1 0.6 1.2 1.7
Saving rate (level) 14.8 15.0 14.6 14.8 14.2
Financial saving rate (level) 4.6 4.9 4.2 4.3 4.0
  • * cu: consumption unit
  • Source: Insee

Non-financial corporations’ profit ratio decreased in Q3 due to the acceleration of wages

In Q3 2019, non-financial corporations’ profit ratio decreased to stand at 32.4% (after 32.7%), mainly due to the increase of real wages.

Ratios of non-financial corporations’s account

level (in percent), WDA-SA data
Ratios of non-financial corporations’s account (level (in percent), WDA-SA data)
2018 Q4 2019 Q1 2019 Q2 2019 Q3 2018
Profit share 31.5 32.3 32.7 32.4 31.2
Investment ratio 24.4 24.3 24.5 24.7 24.1
Savings ratio 22.3 23.7 24.1 23.1 22.6
Self-financing ratio 91.4 97.6 98.6 93.4 93.7
  • Source: Insee

In Q3 2019, the general government deficit has been reduced significantly

In Q3 2019, general government’s net borrowing decreased by 0.6 points: the deficit stood at 2.5% of the GDP after 3.1%. Revenues accelerated (+1.4% after +0.7%), driven by corporate tax which grew sharply after a weak second quarter. In Q3 2019, government's expenditures grew almost at the same pace as previous quarter (+0.3% after +0.4%). Social benefits' acceleration is compensated by the slowdown in transfer of capital and public investment.

Expenditure, receipts and net borrowing of public administrations

level, WDA-SA data
Expenditure, receipts and net borrowing of public administrations (level, WDA-SA data)
2018 Q4 2019 Q1 2019 Q2 2019 Q3 2018
In billions of euros
Total expenditure 332.0 334.5 335.7 336.7 1318.8
Total receipts 317.0 315.1 317.2 321.5 1259.1
Net lending (+) or borrowing (–) -15.0 -19.4 -18.5 -15.2 -59.7
In % of GDP
Net lending (+) or borrowing (–) -2.5 -3.2 -3.1 -2.5 -2.5
  • Source: Insee

Revisions

The GDP growth estimate for Q3 2019 is confirmed at +0.3%. 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.

To go further

Next publication: January 31, 2020 at 07:30 a.m.

Documentation

Methodology ( pdf, 125 Ko)


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