Wednesday, May 15, 2013

France Enters Recession, GDP Decreased Again In Q1 2013 (-0.2%), EUR/USD Tests 1.29

EUR/USD fell to 1.2903 on the news.

Source: Yahoo Finance

Here is the French data via INSEE (National Institute for Statistics and Economic Studies):

source: INSEE
"In Q1 2013, French growth domestic product (GDP) in volume* decreased again: –0.2% after –0.2% in Q4 2012. It is the third decrease in the last four quarters.

Household consumption expenditure was almost stable (–0.1% after 0.0%), meanwhile gross fixed capital formation (GFCF) was still diminishing (–0.9% after –0.8%). Overall, total domestic expenditure (excluding change in inventories) slightly decreased, weighing down GDP growth by –0.1 point.

Exports declined (–0.5% after –0.7%), while imports reached near stability (+0.1% after –1.3%). Therefore, foreign trade balance weighed down GDP (–0.2 point, after +0.2 point). Conversely, changes in inventories contributed positively to GDP: +0.1 point, after –0.3 point in Q4 2012."

Interesting because the ECB lowered rates on May 2. Keep an eye on France, Italy, Spain and Greece's growth and unemployment rates.

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