Informations Rapides · 29 November 2024 · n° 296

In Q3 2024, GDP increased by 0.4% and household purchasing power by 0.7% (per consumption unit) Quarterly national accounts - detailed figures - third quarter 2024

In Q3 2024, the GDP in volume terms increased by 0.4% driven by the Paris Olympic and Paralympic Games.

The purchasing power of household gross disposable income (GDI) per consumption unit accelerated (+0.7% after +0.4%). With household consumption less buoyant than purchasing power, the household savings rate rose slightly: it stood at 18.2% of the GDI after 17.9% in the previous quarter.

The margin rate of non-financial companies (NFCs) bounced back strongly in Q3 2024: it stood at 32.4% of their value added, after 31.2% in the previous quarter.

The general government borrowing requirement deteriorated (by 0.6 points of GDP) and stood at 6.3% of GDP.

In Q3 2024, GDP in volume terms* increased (+0.4% in quarterly variation after +0.2%) boosted by the Paris Olympic and Paralympic Games. Household consumption recovered sharply (+0.6% after being stable in Q2 2024), driven by a rise in consumption of services (+0.9% after +0.5%) in particular due to the registration of ticket sales for the Olympic and Paralympic Games. Furthermore, consumption of goods recovered slightly (+0.4% after -0.2%), with the upturn in food consumption (+0.5% after -1.6%) and an increase in purchases of textile-clothing. By contrast, the gross fixed capital formation (GFCF) continued to fall in the third quarter of 2024 (-0.7% after -0.1%), as a result of a sharp decline in manufactured goods (-4.2% after -1.4%), in particular in transport equipment (-8,0% after -0,9%). Overall, the contribution of final domestic demand excluding inventories to GDP growth was positive this quarter and stood at 0.3 points.

Exports fell back in Q3 2024 (-0.8% after +0.6%): they were penalised by exports of goods. Imports also fell back this quarter (-0.6% after +0.1%), also as a result of goods, but by slightly less than exports. Overall, the contribution of foreign trade to GDP growth was negative in the third quarter of 2024 (-0.1 points after +0.2 points).

Finally, the contribution of inventory changes to GDP growth was slightly positive this quarter (+0.1 points after -0.1 points).

Household gross disposable income (GDI) in current euros accelerated in Q3 2024: it rose by 0.9% after +0.4% in the previous quarter. The wage bill received by households decelerated (+0.5% after +0.9%) due to the slowdown in the average wage per capita (+0.5% after +0.8%) and the stability of employment. Social benefits remained buoyant this quarter (+1.2% after +1.0%). Furthermore, income tax paid by households fell sharply (-1.6% after +0.8%).

At the same time, the price of household consumption was almost stable (+0.1% after -0.1%). Thus, the purchasing power of household GDI accelerated this quarter, rising by 0.9% after +0.5% in Q2 2024. Measured per consumption unit, in order to bring it down to an individual level, it increased by 0.7% over the quarter as a whole after +0.4%.

The household savings rate increased for the fourth quarter running, household consumption in volume terms growing less than their purchasing power; it stood at 18.2% after 17.9% in Q2 2024. It is still standing nearly 3 points above its level before the health crisis.

Total hours worked were stable in Q3 2024 in line with the previous quarter, as did total employment (after +0.1% in Q2 2024). The number of hours worked per job was therefore stable (after -0.1%).

In the third quarter of 2024, the profit margin of non-financial companies (NFCs) recovered sharply: it reached 32.4%, up by 1.2 points from 31.2% in the previous quarter. The margin rate was boosted in the third quarter by the terms of trade, with the price of value added rising significantly faster than the price of household consumption, due in particular to the fall in the price of hydrocarbons and the rise in the price of electricity for exports. In addition, ticket sales for Olympic and Paralympic broadcasting rights generated productivity gains in the accounts this quarter.

In the third quarter of 2024, the general government borrowing requirement rose by 0.6 points of GDP. It stood at 6.3% of GDP, after 5.7% in the second quarter of 2024. Public spending continued to increase (+€5.0 bn, or +1.2%), driven up by social benefits (+€1.3 bn) and operating expenditure (+€1.5 bn). Public revenues were stable, penalised by lower taxes on income and wealth (-€2.0 bn).

GDP growth for the third quarter of 2024 was not revised compared to the first estimate. The contribution of final domestic demand excluding inventories to growth was slightly revised upwards by 0.1 points, at +0.3 points, while the contribution of foreign trade was revised downwards by 0.1 points. Finally, the contribution of inventory changes was revised upwards slightly by 0.1 points.

Since the previous publication (Q3 first estimate), new information have been included and the seasonal adjustment (SA) and working day adjustment (WDA) coefficients have been updated.

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