The French economy recorded zero growth sequentially for a third consecutive quarter in the three months through June, the preliminary figures released by the statistical office Insee showed Tuesday.
Economists had forecast a 0.1 percent contraction in the Gross Domestic Product. The fourth quarter 2011 GDP was revised to show no growth from the previously reported 0.1 percent growth.
Bank of France had predicted 0.1 percent decline in GDP in the second quarter and a similar size contraction for the third quarter.
In the second quarter, household spending declined 0.2 percent, while gross fixed capital formation increased 0.6 percent. Overall, total domestic demand, excluding changes in inventories, drove GDP on for just 0.1 percentage point of growth.
Import growth accelerated to 1.8 percent, while exports rose just 0.2 percent. Consequently, foreign trade balance contributed again negatively to GDP growth by 0.5 percentage point.
Changes in inventories contributed positively to overall growth in the second quarter, adding 0.3 percentage point to GDP.
by RTT Staff Writer
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