French economic activity increased by 0.1% in the fourth quarter of 2023, the National Institute of Statistics (Insee) indicated on Thursday, revising slightly upwards its first estimate of stagnation in gross domestic product (GDP).
This timid increase compared to the previous three months is attributable to household consumption that is slightly lower than expected, according to INSEE.
The level of growth is maintained at 0.9% for the whole of 2023, supported by a second quarter which stood out for its dynamism (+0.6%, revised downward by 0.1 point), while the first and third quarters stagnated.
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Inflation threatens economic activity
In detail, between October and December, household consumption stabilized (0.0% compared to -0.1% in the first estimate), consumption of services having counterbalanced the decline observed in food and energy expenditure.
The purchasing power of households has rebounded thanks to an increase in their gross disposable income, supported in particular by salary increases, an increase in supplementary pensions and the payment of a purchasing power bonus to civil servants.
But their consumption in volume terms having remained stable, the savings rate rose from 17.3% in the third quarter to 17.9% in the last, showing great prudence in terms of spending after months marked by high inflation .
Penalized by high rates decided by the European Central Bank (ECB) to cool the rise in prices, investments (-0.9%) recorded a greater drop than previously calculated.
Both business (-0.9%) and household (-1.4%) investments are affected, and the housing construction sector is particularly affected.