Informations Rapides · 30 November 2021 · n° 305

Purchasing power of GDHI by consumption unit was stable in Q3 2021 (0.0%), while corporations’ profit ratio fell back significantly (–2.8 points) Quarterly national accounts - detailed figures - third quarter 2021

Gross disposable household income (GDHI) accelerated during Q3 2021: +0.8% after +0.6%.

The payroll received by households accelerated significantly (+4.4% after +0.7%): the employment remained dynamic (+0.8% in both Q3 and Q2 2021), driven by the recovery of the activity, while the average wage per capita bounced back sharply (+3.6% after −0.1%), especially because of the lesser use of the partial activity scheme. However, individual entrepreneur’s mixed income went back (−5.4%), with the decreased in grants from the Solidarity Fund, but remained above its pre-crisis level (+1.1% compared to 2019 Q4).

Wage income’s dynamism was mechanically offset by the acceleration of employee social contributions (+2.6% after +1.0%) and of taxes on income and wealth (+2.0% after −0.6%). Moreover, social benefits received by households diminished sharply (−2.8% after +0.2%), driven by a downturn in unemployment and sick leave benefits, as well as a reduction of benefits from the partial activity scheme.

All in all, considering the acceleration of consumption prices (+0.7% after +0.3%), household purchasing power remained almost stable in Q3 2021 (+0.1% after +0.3%). It stood 1.9% above its Q4 2019 level. Measured by consumption unit to bring it to an individual level, it remained stable in Q3 (0.0% after +0.2%) and stood 1.3% above its pre-crisis level.

Despite the acceleration of the GDHI, the strong increase in consumption expenditure, that followed the softening of sanitary constraints, (+5.7% in Q3 2021 in current euros) made households' savings rate decrease. It stood at 17.5% after 21.3% in Q2 2021, though remaining above its 2019 level (15,0 %).

In Q3 2021, non financial corporations profit ratio decreased sharply: it stood at 32.9% after 35.7% in Q2 2021. This downturn can be explained by the decrease in benefits granted to companies (including the Solidarity Fund) and by productivity gains being about two times less dynamic than real wages. Profit ratio was thus slightly above its 2018 average level (31.6%), this increase being driven by a drop in production taxes in early 2021.

In Q3 2021, general government deficit decreased by 3.1 GDP points. It stood at 5.6% of GDP, after 8.7% in Q2 2021. On average, it stood at 3.1% of GDP in 2019 and at 9.1% in 2020. This improvement was due to a rise in public revenues (+2.8%) linked with the increase in economic activity (rise of VAT and social contributions). Spending on the other hand stepped back (-2.4%), held by a diminution in public subsidies to several economic actors (Solidarity fund, sick leave benefit, extension of the unemployment benefit for unemployed people at the end of their entitlement,…) following the end of health measures restrictions.

Total hours worked went up by 4.7% during Q3 (after +1.4%). This increase was mainly due to the lesser use of the partial activity scheme and to a new increase in the total employment. Total hours worked approached their pre-crisis level (−0.6% compared to Q4 2019, after –5.0% in Q2 2021).

In Q3 2021, GDP measured in volume terms accelerated (+3.0% after +1.3% in Q2 2021): it almost went back to its pre-crisis level (−0.1% compared to 2019 Q4).

Total domestic demand (excluding stock) contributed positively to its evolution (+3.3 points after +1.5 points in Q2): notably, household final consumption expenditure accelerated sharply (+4.9% after 1.4%) and contributed by +2.4 points to the GDP growth this quarter. Gross fixed capital product (GFCF) was almost stable (+0.1% in Q3 after +2.4% in Q2 2021).

Exports accelerated (+2.5% after +1.2% in Q3 2021) while imports were stable (+0.1% after +1.6%). Foreign trade remained below its Q4 2019 level. Nonetheless, it contributed positively to GDP growth: +0.7 points, after −0.2 points in Q2 2021. Finally, changes in inventories also made a negative contribution to GDP growth (−1.0 points after −0.1 points in Q2 2021).

The GDP growth estimate for Q3 2021 remains unchanged from it first estimate published back in late October. Slight revisions in different aggregates offset each other; they are mainly due to the revision of indicators, and to the update of seasonally adjusted coefficients.