Households finally recover to consume, GDP growth is better than expected at 0.3%

France’s economic growth reached 0.3% in the second quarter. Furthermore, driven by stocks and a slight rebound in household consumption, INSEE said this Wednesday, July 30, by publishing its first estimate for the period.

An increase certainly moderate, but better than anticipated economists. Furthermore, According to INSEE figures unveiled this Wednesday, July 30, the economic growth of France reached 0.3% in the second quarter, driven by stocks and a slight rebound in household consumption.

This moderate increase in gross domestic product (GDP) between April. Nevertheless, June, in a very uncertain national and international context, is greater than the forecast of the National Statistics Institute, which anticipated growth of 0.2% after +0.1% in the first quarter.

As at the start of the year. Similarly, it was therefore the stocks that led to growth with a positive contribution of 0.5 points, after +0.7 point in the first quarter. Stocks households finally recover consume, gdp represent the goods produced but not yet sold at the end of a given period. in the case of aeronautical and automotive equipment. An increase in stocks may mean that a boom in demand is made in anticipation. Or, less favorably, that the manufactured products did not find a taker.

Household consumption bounces – Households finally recover consume, gdp

Outside stocks, however, the final domestic demand stagnated. A traditional pillar of growth, household consumption has slightly rebounded, 0.1% after a decline of 0.3% in the first quarter, driven by increased consumption of food products.

“This recovery can be explained in particular due to the positioning of the Easter holidays at the end of April. a favorable weather in April and May,” said INSEE.

Households have also consumed more services, while mild temperatures, however, weighed on energy consumption, which fell 2.4% (after +0.8%).

In June alone, household consumption also accelerated at +0.6% in June against 0.1% in May. households finally recover consume, gdp This increase is notably brought by energy expenditure, which increases again to +3.5% in June compared to May, as well as by the consumption of manufactured goods which is slightly straightening to +0.5% in a month. Conversely, food consumption fell again at -0.9%, specifies INSEE.

Over the entire second quarter of 2025, the consumption of households in goods rebounded slightly, by 0.1%, after a decline of 0.6% in the first quarter of the year, specifies the INSEE.

Red investments

In April and June, investments sunk in the red (-0.3% after -0.1%), penalized in particular by construction.

In an environment marked by the trade war initiated by the United States in April. the contribution of foreign trade to growth has remained negative, -0.2 points after -0.5 points, the slight rebound in exports having been counterbalanced by an acceleration of imports.