Informations Rapides · 30 August 2024 · n° 213

In Q2 2024, GDP increased (+0.2%) and household purchasing power rose (+0.2% per consumption unit) Quarterly national accounts - detailed figures - second quarter 2024

In Q2 2024, the GDP growth in volume terms increased by 0.2%.

The purchasing power of household gross disposable income (GDI) per consumption unit slowed down (+0.2% after +0.4%). However, as consumption was virtually stable, the household savings rate continued to rise: it stood at 17.9% of the GDI after 17.6% in the previous quarter.

The margin rate of non-financial companies (NFCs) fell again sharply in Q2 2024: it stood at 30.8% of their value added, after 31.7% in the previous quarter.

The general government borrowing requirement declined slightly by 0.1 points of GDP.

In Q2 2024, GDP in volume terms* increased moderately (+0.2% in quarterly variation after +0.3%). Household consumption recovered slightly (+0.1% after -0.1% in Q1 2024), driven by a rise in consumption of services (+0.5% after +0.3%). Consumption of goods remained stable (+0.0% after -0.1%), the decline in food consumption (-1.6% after -0.1%) was offset in particular by higher gas and electricity consumption (+3.0% after +0.2%). The gross fixed capital formation (GFCF) fell again in the second quarter of 2024 (-0.4% after -0.5%), mainly as a result of a decline in construction (-0.9% after -1.0%) and in capital goods (-2.7% after -1.0%). Government spending slowed down (+0.4% after +0.6%). Overall, the contribution of final domestic demand excluding inventories to GDP growth was zero this quarter, as in the previous quarter.

Exports continued to increase moderately in Q2 2024 (+0.4% after +0.6%): they were driven in particular by the dynamism of transport equipment shipments. As for imports, they recovered slightly this quarter (+0.1% after -0.4%), supported by imports of energy, water, waste and food industry products. Overall, the contribution of foreign trade to GDP growth was positive in the second quarter of 2024 (+0.1 points after +0.3 points).

Finally, the contribution of inventory changes to GDP growth was zero this quarter as in the previous quarter.

* Volumes are measured at previous year's prices, chain-linked and adjusted for seasonal variations and working day effects (SA-WDA).

Household gross disposable income (GDI) in current euros decelerated in Q2 2024: it rose by 0.6% after +1.6% in the previous quarter. Social benefits slowed down sharply (+0.8%, after +2.8%) after the revaluation of basic retirement pensions in the previous quarter. On the other hand, the wage bill received by households accelerated (+0.7%, after +0.4%): salaried employment grew by 0.1% as in the previous quarter, while wages rose by 0.6% after +0.3%. Taxes paid by households decelerated (+0.7%, after +2.3%) due to income tax.

At the same time, the price of household consumption increased by 0.2% (after +1.0%). Thus, the purchasing power of household GDI slowed down this quarter, rising by 0.3% after +0.5% in Q1 2024. Measured per consumption unit, in order to bring it down to an individual level, it increased by 0.2% after +0.4%.

The household savings rate increased again this quarter, household consumption in volume terms growing less than their purchasing power; it stood at 17.9% after 17.6% in Q1 2024.

Total hours worked were almost stable in Q2 2024 (+0.1% after 0.0% in previous quarter). Total employment continued to increase (+0.1% after +0.1%) and the number of hours worked per job declined slightly (-0.1% after -0.1%).

In the second quarter of 2024, the profit margin of non-financial companies (NFCs) dropped sharply: it reached 30.8%, down 0.8 points from 31.7% in the previous quarter. It is now at the average level for 2019. This decline is largely due to the fall in the price of value added, especially in the energy sector. The rise in real wages also contributed to the decline of the margin rate.

In the second quarter of 2024, the general government borrowing requirement fell by 0.1 points of GDP. It stood at 5.5% of GDP, after 5.6% in the first quarter of 2024. Public revenues was up by €2.9 bn (+0.8%), boosted by higher product tax receipts and social contributions. Public spending also rose up by €2.4 bn (+0,6%), but a bit less than revenues.

GDP growth for the second quarter of 2024 was revised downwards by 0.1 points, at +0.2%, versus +0.3% at the first estimate. GFCF was revised downwards, due to the integration of turnover indices in services for the month of June, while household consumption was revised upwards slightly. The contribution of final domestic demand excluding inventories to growth was revised downwards by 0.1 points, at 0.0 point (compared with +0.1 points at the first estimate).

On the other hand, imports were revised upwards and exports downwards, leading to an downwards revision of the contribution of foreign trade to quarterly GDP growth by 0.1 points (it stood at +0.1 points, versus +0.2 points at the first estimate). Lastly, the contribution of inventory variations was not revised this quarter.

Since the previous publication, new information have been included and the seasonal adjustment (SA) and working day adjustment (WDA) coefficients have been updated.

As part of the reporting of the general government debt and deficit to the European Union, the annual accounts are updated each year at the end of August to take into account the latest data from the social security funds and revisions that may affect the general government account. The annual public finance tables for 2023 have therefore been updated.