France's economy contracted by -0.1% QoQ in Q1 2026, according to INSEE's second and final GDP estimate, a downward revision from the initial estimate of flat growth.

• The revision reflected weaker household consumption and investment, with household spending falling -0.2% QoQ and gross fixed capital formation declining -0.6%, led by a -1.7% drop in construction investment.
• Foreign trade was a major drag on growth, subtracting -0.9 percentage points from GDP as exports fell -3.5%, largely due to weaker aeronautics shipments, while imports declined -0.9%.
• A strong inventory rebuild added 1.0 percentage point to GDP growth, reversing the drag from inventory drawdowns seen in the previous two quarters.
• Household purchasing power per consumption unit slipped -0.1% QoQ, while the household savings rate increased to 17.9% from 17.7%.
• The profit margin of non-financial corporations fell sharply to 31.7% from 32.5%, with INSEE citing deteriorating terms of trade and higher global energy prices as key factors.