France's GDP grew by 0.3 per cent in the second quarter of 2025, up from 0.1 per cent in the previous quarter, driven by a slight rebound in consumer spending and a strong positive contribution from inventory changes, according to data from the National Institute of Statistics (INSEE). Household consumption rose by 0.1 per cent after a 0.3 per cent decline in Q1, with higher food and tobacco spending offsetting a sharp fall in energy consumption. Consumption of services also gained pace, particularly in accommodation, catering and transport. Gross fixed capital formation (GFCF) continued to decline, down 0.3 per cent, weighed by weaker investment in construction and transport equipment. Foreign trade once again dragged on GDP growth, subtracting 0.2 percentage points as imports rose 0.8 per cent while exports increased only 0.2 per cent. Production in the manufacturing sector slowed to 0.1 per cent amid refinery maintenance and weaker output in food and pharmaceuticals, while transport equipment production surged by 4.8 per cent, led by aerospace. A buildup in inventories contributed 0.5 percentage points to GDP growth, largely due to stockpiling in the aeronautics and automotive sectors. INSEE's data suggests modest but broad-based recovery in domestic demand, even as investment and trade continue to weigh on overall growth. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
