TREE NEWS reports: France’s economy contracted 0.1% quarter-on-quarter in the third quarter, missing expectations of 0.1% growth. The prior quarter’s reading was flat at 0.0%. The surprise decline marks a weak start to the second half for the euro zone’s second-largest economy.
France Q3 GDP falls 0.1% QoQ vs 0.1% growth expected
A contraction where flat-to-modest growth was expected puts France out of step with the mild expansion the euro area has been posting, and the back-to-back stall across two quarters suggests momentum was already fading before the third quarter. Because France is the bloc's second-largest economy, its weakness feeds directly into euro-area aggregates and into the policy debate over how much support the region still needs. The open question is whether this is a one-quarter air pocket or the start of a broader slowdown, and whether upcoming euro-area data echo it.
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