Preliminary data published by INSEE showed that GDP grew by 0.7% per annum in the 4th quarter after an increase of 0.6% per annum in the 3rd quarter. In quarterly terms, GDP remained unchanged, as expected. Meanwhile, the reading for the 3rd quarter was revised to 0% from -0.1%. On average in 2023, GDP increased by 0.9% after +2.5% in 2022. This annual growth was mostly the result of a sharp rise in the second quarter of 2023, while activity remained stable over the rest of the year.
Total output (goods and services) remained unchanged in the 4th quarter after a 0.1% QoQ increase in the 3rd quarter. Manufacturing industry production rebounded slightly (+0.1% after ‑0.2%). However, production fell in refineries (‑1.4% after +6.8%) and in the food industry (‑1.5% after ‑1.6%). Construction production continued to fall (-0.7% after -0.3%), while the production of market services was stable this quarter (0.0% after +0.1%).
Household consumption fell by 0.1% QoQ after an increase of 0.5% QoQ in the 3rd quarter. Household purchases of goods shrank this quarter (-0.6% after +0.6%), while energy consumption weakened sharply (‑2.5% after +0.1%). Spendings on transport equipment continued to rise (+3.3% after +2.6%).
INSEE also said that final domestic demand (excluding inventory) contributed negatively to GDP growth this quarter (-0.1 points after +0.4 points in Q3), due to the decrease of gross fixed capital formation (GFCF, -0.7% after +0.2%) and of household consumption (-0.1%). Foreign trade contributed positively to GDP growth (+1.2 points after -0.1 points). The contribution of inventory changes to GDP growth was negative again this quarter (‑1.1 points after ‑0.3 points in Q3 2023).