French GDP grows 0.1 percent as firms face rising input costs

September industrial activity rose less than firms anticipated, while market services accelerated and construction remained broadly stable.

Aeronautics stayed strong, but wood, paper and printing and rubber, plastics and glass remained subdued.

Capacity utilisation rose to 76.8 percent from 76.4 percent in August.

Cash positions worsened slightly in industry and more markedly in services.

Supply difficulties affected 11 percent of industrial firms and 5 percent of construction firms, reaching around 20 percent in aeronautics.

For October, firms forecast faster industrial growth, slower services expansion and almost unchanged construction activity.

Automobile producers anticipate a marked decline because supply difficulties require temporary site stoppages.

Industrial input costs rose, but limited pass-through squeezed margins.

In September, 13 percent of industrial firms raised prices versus a seasonal average of 10 percent; 12 percent plan October increases.

Services figures were 11 percent versus 8 percent.

In construction, 11 percent raised quotes and 12 percent plan October increases, matching seasonal averages.

Recruitment difficulties affected 18 percent of firms: 16 percent in industry, 18 percent in services and 22 percent in construction.

Uncertainty rose after declining since March, with fuel prices a central concern.