French Q3 GDP growth projected at 0.2 percent
The Banque de France estimates French GDP will grow by 0.2 percent in the third quarter of 2026, matching Q2 expansion. Business leaders surveyed across 8,500 companies expect activity to pick up in August after moderate growth in July.
Technology and energy offset automotive slump
Industrial production grew moderately in July, weighed down by marked contractions in the automotive, apparel, and non-metallic mineral sectors.
In contrast, activity remained strong in technology, energy, and defense-related industries, with computer and electronic products serving as the primary growth driver.
Market services slowed as expected, though software publishing, vehicle repairs, and accommodation provided positive contributions.
Meanwhile, construction showed overall resilience as finishing works accelerated due to strong demand for thermal protection and air conditioning.
Overall capacity utilization held stable at 76.7 percent, while cash positions remained close to normal in industry despite persistent weakness across services.
Price pressures cool as order books stabilize
Selling price increases eased across major sectors, with only 13 percent of manufacturing firms raising prices in July compared to 36 percent across the broader spring period.
Supply chain bottlenecks affected 11 percent of industrial companies, remaining most acute in aeronautics at over 33 percent.
Looking ahead to August, business leaders anticipate widespread recovery across industry and structural construction, supported by robust order books in high-tech and defense manufacturing.
Summer rebound built on fragile ground
The projected 0.2 percent growth shows basic stability, but relies on temporary catch-up effects rather than solid demand.
Geopolitical friction in the Middle East and extreme weather continue to threaten cost structures and productivity.
Without sustained private order momentum, this minor August rebound risks fading quickly.
Source: Monthly Business Survey – Start of August 2026
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