France Economy Shrinks 0.1% Unexpectedly in Q3

France’s economy unexpectedly shrank 0.1% in the third quarter, following stagnation in the previous quarter and missing forecasts for modest growth. Falling investment and weaker exports drove the contraction: exports dropped 1.7%, and net trade subtracted 0.6 percentage points from growth, while investment declined for a third straight quarter. Household consumption improved and inventory changes offered some support, but not enough to offset the external and investment weakness. The figures add to concerns over France’s debt and fiscal outlook, with political uncertainty weighing on confidence and limiting the government’s room to support growth. The data may reinforce caution about further European Central Bank rate increases, though policymakers will also weigh inflation and developments across the wider euro area.