France, fragile rebound in the third quarter 2014 : +0,3 %

GDP grew 0.3% in the third quarter is a little stronger than expected. In contrast, the growth rate was revised down from -0.1% in the second quarter.

Public spending, which rose 0.8% against a 0.5%  contributed to the growth.   Consumption expenditure of households edged up 0.2%, slightly down from the second quarter (+ 0.3%). Consumption was supported by energy purchases by spending manufactured goods as well as in those goods. In contrast, expenditure on food declined.

The investment, which is very worrying, continues to decline, -0.6% in the third quarter against -0.8% in the second quarter. The decrease in investment is largely attributable to households and public administration.

Another worrying imports rising faster than exports that France can not take advantage of the decline of the euro. Exports increased 0.5%, which is better than the second quarter (-0.1%). Imports rose 1.1% after rising 0.3%. Import growth is faster than that of consumption well reflecting the problem of competitiveness of France.

Manufacturing output rose when construction continues to decline

Manufacturing output rose 0.5% in the 3rd quarter as market services. However, construction is still suffering with a decline of 1% following the 1.4% decline in the second quarter. The building sector is penalized by the decline in investment and a decrease in building permits. Investment in construction down 1.7%.

The growth rate in 2014 is expected to reach 0.4%.  The growth rate for 2014 could given the results of 3rd quarter growth reaching 0.4% over the year. For the record, the growth rate was zero in the first quarter and was negative at 0.1% in the second quarter. In addition, there was a carryover given the past growth was estimated at 0.3% 2014.

Germany avoids recession with 0.1% growth in Q3

After a decline in GDP of 0.1% in the second quarter, Germany grew 0.1% in Q3. The growth rate of the year is expected to exceed 1.2%. German growth has been driven by domestic consumption. However, as in France, the investment back.