French GDP grew 0.1% QoQ (vs 0.2% QoQ expected) in Q1 2025, rebounding slightly after a -0.1% contraction in Q4 2024, but final domestic demand stalled and net trade dragged growth.

• Household consumption was flat (0.0% QoQ), while GFCF declined -0.2%, driven by drops in construction (-0.8%) and manufactured goods (-0.5%).
• Exports fell -0.7% QoQ, led by chemicals and autos, while imports rose +0.4%, resulting in a -0.4 ppt drag from net trade.
• Inventory changes contributed +0.5 ppts to GDP growth, the largest positive contribution since 2022.
• When excluding inventories, final domestic demand saw no little to no growth and made a 0.0 ppt contribution to quarterly GDP growth.
• Manufacturing output rose +0.4%, including sharp gains in food/beverages (+1.6%) and transport equipment (+1.4%), while capital goods and refining declined.
• Market services rebounded +0.4% and construction output fell again (-0.5%), continuing a year-long contraction trend.