France's gross domestic product contracted 0.1% quarter-on-quarter in the third quarter of 2026, marking its second quarterly contraction of the year and falling short of analysts' 0.1% growth forecast. Household consumption increased 0.4% and public consumption rose 0.3%, but investment fell 0.6%, exports dropped 1.7% and net foreign trade reduced growth by 0.6 percentage points. Inflation accelerated to 3.8% in October, its highest level since late 2023, as energy costs rose. The data add to pressure from higher global bond yields, violent protests, weak business and consumer confidence, and uncertainty over the government's budget and fiscal position. Spain's economy expanded 0.6%, while the euro area's 21-nation economy was expected to grow 0.2%.