France’s economy grew by 0.2% quarter-on-quarter in Q4 2025, down from a 0.5% increase in Q3 and in line with market forecasts, according to preliminary data released on Friday.

This was the slowest quarterly expansion in three quarters, driven by weaker domestic demand.

Growth in government spending decelerated to 0.3% (from 0.7% in Q2), and fixed investment also slowed, rising just 0.2% compared with 0.7% previously.

The slowdown in investment was mainly due to lower spending on transport equipment, capital goods, and construction, Trading View reports.

Furthermore, changes in inventories continued to weigh on growth, subtracting 1.0 percentage point.

On the other hand, household consumption picked up, rising 0.3% versus 0.1% previously, buoyed by stronger spending on goods and continued growth in services consumption.

However, household spending on goods fell 0.6% month-on-month in December last year, following a 0.3% decline in November and exceeding expectations of a 0.4% drop.

The fall was largely driven by a sharp decrease in engineered goods consumption (-1.0% versus +0.5% in November), with notable contractions in durable goods (-1.2%) and textiles and clothing (-2.1%), while other engineered goods remained flat.

Food consumption also continued to decline (-0.9% versus -0.1%), reflecting lower purchases of seasonal items, particularly festive products, although tobacco spending rose.

In contrast, energy consumption rose 0.8% after falling 2.0% previously, driven by higher petrol and diesel use amid low fuel prices, even as demand for gas and electricity fell due to unusually mild temperatures.

Moreover, net trade gave a significant lift to growth, adding 0.9 percentage points, as exports continued to rise (0.9% versus 3.2% previously) while imports declined (-1.7% compared with 1.5%).

On a year-on-year basis, GDP increased 1.1%, up from 0.9% in Q3, slightly below the 1.2% forecast, yet representing the fastest annual growth in five quarters.