Economic flash France – French GDP accelerates in the first quarter, inflation increases in April

• In Q1 2023, France’s GDP increased (+0.2% after +0.0% in Q4 2022) according to INSEE. Developments are divergent within the different components of GDP: the acceleration of economic growth this quarter is driven by foreign trade on the demand side and by industrial production on the supply side (see below).

• Inflation in France should increase, to +5.9% in April according to INSEE, after +5.7% in March; which can be explained by an acceleration in energy prices and service prices (see below).

• Household consumption of goods retreats again in March (−1.3% monthly change in volume, after −0.8%). This dip in March mainly reflects a net reduction in food expenditure, but also in automobile consumption.

• The “confidence of households » is slightly improving in April (+1 pt to 83) but is still well below its long-term average (100). Quarterly business tendency surveys in the construction industry send mixed signals according to the sectors concerned: the opinion of building craftsmen is improving and is at a good level; that of public works contractors is fairly stable and close to average, while the survey on property development shows a weakened sector.