Sunday, November 12, 2006

French economic growth unexpectedly slowed down in the third quarter

As the data of the GDP in France showed, the economic growth in France unexpectedly stagnated in the third quarter, after the most expensive paces of development in the preceding quarter.

The preliminary GDP in France was 0.0% in the third quarter, against +1.2% in the second quarter. The economists expected French GDP to amount to 0.5%.

Undoubtedly, negative data of GDP in the third largest economy of the world will find its reflection in the macroeconomic indicators of European economic growth. The paces of economic growth were down due to abrupt slump in manufacturing activity. Industrial production was down by 0.1% in the third quarter, reflecting unexpected 0.9% drop in September.

European sales of French automobiles decreased this quarter. Thus, the incomes of such leading auto manufacturers as Peugeot will fall this year.


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