French Q3 growth revised down

The French economy grew by less than expected in the third quarter of the year, according to the latest statistics.

Figures published by statistics agency Insee show French GDP grew by 0.3% in the three months to the end of September, down from the previously-estimated 0.4%.

The agency says the 10 basis point move is due to revisions of a number of indicators in the first estimate, most notably the estimate for production. Industrial production fell by 0.4% in the quarter, compared with the 0.5% growth seen a year ago.

Household disposable income “markedly decelerated” across the quarter, according to Insee. Disposable incomes rose by just 0.4%, falling from the 1.2% recorded in the quarter before.

Last week, Fitch gave France’s AAA rating a negative outlook, claiming a downgrade is more likely as the eurozone debt crisis continues to increase the risk to the government’s liabilities.

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