Official figures show that the French economy was flat in the third quarter of 2006 compared with the previous three months, as strong consumer spending was offset by poor results in foreign trade and inventory reduction.
The second estimate released by the national statistics institute Insee showed confirmed an initial figure which had surprised economists who had expected third quarter growth of 0.5%.
In the third quarter, household consumption contributed 0.3 percentage points to overall growth, while investment by business and individuals added 0.1 points. The foreign trade balance trimmed 0.2 points from the total, however, while variations in inventories cut another 0.3 points, Insee said.
On Monday, French Finance Minister Thierry Breton forecast a 'very good fourth quarter', with growth of 0.6-0.8% from the previous three-month period. Full-year growth would reach 2-2.5%, Breton predicted.
