France's economy witnessed its growth easing to 0.1% in the third quarter, buoyed by strong consumer spending according to an initial estimate, the national statistics office said Tuesday.

That marks a sharp slowdown from the 0.6% growth quarter-over-quarter growth that the French economy registered in the second quarter after INSEE revised the figure for that quarter up by a tenth of a percentage point.

For 2023 as a whole, INSEE forecasts the French economy will expand by 0.9%, which is the same as the estimate of the French central bank and just under the 1% expected by the government.

French consumers, who account for a major portion of demand, boosted their consumption by 0.7%, particularly on food, as inflation remains elevated.

Business investment also remains a growth driver, rising by 1.5%.

But after a strong second quarter, exports fell by 1.4% in July through September.

Manufacturing contracted by 0.3%, as did services.

Economy Minister Bruno Le Maire welcomed that the French economy continued to grow despite high interest rates meant to bring down inflation.

"In a degraded environment, the French economy is holding on," he told journalists.

Data released by INSEE subsequently showed inflation slowed considerably in October to an annual rate of 4% from 4.9% in September.

The drop was primarily due to energy prices being lower than at the same time last year.

But on a monthly basis, prices edged 0.1% after falling 0.5% in September.

Le Maire said France is "in the process of exiting the inflationary crisis."