French GDP was confirmed at an increase of 0.1% QoQ in Q1 2025 (after -0.1% QoQ in Q4 2024), supported by a large inventory build while final domestic demand and net trade dragged growth.

• There were some revisions within the components:
• Household consumption declined -0.2% QoQ, driven by a sharp -4.0% drop in transport equipment spending.
• GFCF was flat (0.0% QoQ), as declines in construction (-0.9%) offset gains in IT/communications (+2.0%).
• Exports dropped -1.8% QoQ (vs +0.7% prior), while imports rose +0.5%, resulting in a -0.8 ppt drag from net trade.
• Inventory changes contributed +1.0 ppt to GDP growth, driven by chemicals, pharma, food, and transport equipment.
• Household purchasing power per consumption unit increased slightly (+0.1% QoQ), with the savings rate rising to 18.8%.
• Hours worked fell -0.4% QoQ due to both lower employment (-0.3%) and hours per job (-0.2%).
• Non-financial corporate profit margins edged down to 31.8% (from 32.0%), mostly due to falling value-added prices.
• The general government borrowing requirement declined to 5.6% of GDP (from 5.8%), as tax revenues outpaced spending.