France’s economy contracted by 0.1% quarter-on-quarter in Q3 2026, following flat growth in Q2 and defying expectations of a 0.1% expansion, according to preliminary estimates.
Net trade shaved 0.6 percentage points off GDP growth, reversing the positive 0.6-point contribution recorded in Q2. Exports fell 1.7% after a 2.8% increase in the previous quarter, while imports inched up 0.1% following a 0.9% rise.
Gross fixed capital formation declined for the third consecutive quarter, falling 0.6% after a 0.5% drop in Q2.
By contrast, domestic demand excluding inventories continued to provide modest support, contributing 0.1 percentage points to growth, unchanged from the previous quarter. Household consumption accelerated to 0.4% from 0.2%, while government consumption growth eased to 0.3% from 0.4%.
Changes in inventories added 0.4 percentage points to GDP growth, after subtracting 0.7 points in Q2.
On an annual basis, GDP also declined by 0.1%, marking the first year-on-year contraction since Q4 2020.
