Evaluation of the French GDP growth improved to 0.3%

26.02.2016

The volume of French GDP in the fourth quarter of 2015 increased by 0.3% compared with the previous three months, when growth also stood at 0.3%, according to the final data of the National Statistical Center Insee.

In annual terms, GDP increased by 1.4%.

Preliminary data pointed to growth by 0.2% and 1.3%, respectively, and analysts polled by Bloomberg had expected no revision of these figures.

The main reason for the improved evaluation of the economic growth was the revision of capex figure of French companies, which, according to updated data, increased by 0.7% compared to July-September and by 0.9% in annual terms.

According to the Insee report, government spending increased in October-December by 0.5% quarterly and by 1.6% in annual terms; household spending fell 0.2% quarterly and increased by 1% in annual terms.

Exports increased by 1% compared to July-September and by 4.5% in annual terms. Imports increased by 2.5% in the quarterly comparison and by 7.5% from the fourth quarter of 2014.

Insee also released today data on producer prices for January.

Producer prices in France (PPI index) in the last month decreased by 0.8% compared with the previous month, when their drop was 1.2%.

In relation to January 2015, producer prices fell 2.5% last month.

As for other major European economies, in Gemany, consumer price index (CPI) rose less than expected last month. This is evidenced by the preliminary official data released on Friday. According to the report prepared by the Federal Statistical Office of Germany, this index (seasonally adjusted) was 0.4% compared with -0.8% in the previous month. Experts had expected a growth by 0.5%.

In UK, consumer confidence in February 2016 fell 4 points from the previous month - to zero, says the GfK NOP Ltd report. The February value of the index is the lowest since December 2014.

The deterioration of consumer confidence in the UK is due to concerns relating to preparing a referendum on the country's membership in the European Union, experts say. In their view, a referendum the outcome of which is difficult to predict, creates additional risks for the British economy.

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