France Unemployment (% of active population, eop)

Unemployment in France

After flatlining in Q4, quarter-on-quarter economic growth regained speed, growing a mild 0.2% in Q1. Higher industrial production drove the print, expanding at a quicker rate amid lower energy costs. Moreover, despite increased inflation in the quarter, private spending growth was flat, improving from Q4’s contraction amid higher energy and services consumption. Finally, stronger growth in exports and declining imports meant foreign trade contributed positively to the reading. That said, elevated interest rates dampened fixed investment for both businesses and households. Turning to Q2, economic activity should remain at Q1 pace: In April, consumer sentiment improved from Q1’s average, while the composite PMI saw its highest print since May 2022. However, business confidence and the manufacturing PMI dipped in the month, suggesting the rebound in activity will mainly be services-driven.