France Q2 GDP Growth Beats Estimates

The French economy expanded by 0.3% qoq in Q2 2025, accelerating from 0.1% growth in Q1, which had matched market expectations, flash data showed. It marked the fastest pace since Q3 2024, driven mainly by a positive contribution from inventory changes (0.5 ppts), while final domestic demand was flat and net trade weighed on growth. Household consumption edged up 0.1%, bouncing back from a 0.3% decline in Q1, supported by stronger goods purchases during the Easter holidays and favorable weather, especially for food, tobacco, and a strong recovery in accommodation and catering services. Government spending rose steadily (0.2% vs 0.2%). However, fixed investment shrank further (-0.3% vs -0.1%), hurt by ongoing weakness in construction and a drop in manufactured goods. Exports rose 0.2%, rebounding from a 1.1% fall in Q1, as firms rushed shipments to the U.S., while imports climbed 0.8%, driven by higher energy and industrial goods demand. Year-on-year, GDP grew 0.7%, up from 0.6% in Q1.