French GDP projected to grow 0.1 percent in third quarter
The Banque de France estimates that French gross domestic product will grow by 0.1 percent in the third quarter of 2026. The monthly business survey of 8,500 companies showed moderate gains in services and industry alongside subdued construction activity.
Defense and tech lift factory output
Industrial production expanded above its long-term trend in August, led by capital goods, aerospace, defense contracts, and data center construction.
Manufacturing capacity utilization slipped slightly to 76.4 percent from 76.6 percent in July.
Supply chain bottlenecks affected 11 percent of industrial firms, though nearly one-third of aerospace companies reported critical component shortages.
Market services expanded moderately, driven by software publishing and legal and management consulting tied to upcoming electronic invoicing rules.
In contrast, summer heatwaves dampened hospitality activity, while construction held flat due to weak order books in structural works.
Pricing discipline against raw material costs
Price pressures continued to moderate across sectors despite rising raw material costs.
Only 11 percent of industrial manufacturers and 4 percent of construction firms raised selling prices in August.
Between March and August, 36 percent of all surveyed businesses increased prices, compared with a historical average of 20 percent.
Recruitment difficulties eased to 17 percent of firms, down from earlier highs, while business uncertainty ticked up over domestic political developments.
Sluggish momentum with little upside
Projected 0.1 percent growth confirms that France remains close to stagnation after a flat second quarter.
Weather shocks only partially obscure deeper fragilities, notably negative cash positions and barren construction order books.
Without a sustained rebound in business investment, the economy will stay locked in low gear.