The INSEE reported:
In 2012 Q2, French gross domestic product (GDP) in volume held steady (0.0%).
Households’ consumption expenditure slightly declined (–0.2% after +0.2%), while gross fixed capital formation (GFCF) increased anew (+0.6%) after a step back in Q1 (–0.8%). Overall, total domestic demand (excluding changes in inventories) drove GDP on for only 0.1 point of growth after being neutral in Q1.
Imports markedly accelerated (+1.8% after +0.6%), while exports remained subdued (+0.2% after +0.1%). Consequently, foreign trade balance contributed again negatively to GDP growth (–0.5 point after –0.1 point).
In Q2, changes in inventories contributed positively to GDP growth: +0.3 point after +0.1 point in Q2.
The figures from Germany were even more encouraging as Europe’s largest economy grew.
According to the Federal Statistical Office:
The German economy continues its growth trend at a slightly slower pace. In the second quarter of 2012, the gross domestic product (GDP) rose 0.3% — upon price, seasonal and calendar adjustment — on the previous quarter, as reported by the Federal Statistical Office (Destatis). In the first quarter of 2012, the GDP had been up +0.5%.
While neither set of numbers showed any health in the region, at least its two largest economies have held their own.
Douglas A. McIntyre
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