French economy grows 1.1% in quarter

The French economy grew at its fastest pace in almost six years in the second quarter of the year spurred on by a surge in business…

The French economy grew at its fastest pace in almost six years in the second quarter of the year spurred on by a surge in business investment and strong household spending.

The GDP of the euro zone's second largest economy rose by 1.1 per cent in the second quarter compared with the first three months of the year, according to a second estimate from national statistics office INSEE.

Growth was slightly below the 1.2 per cent rise forecast by some economists and follows a flash estimate issued by INSEE earlier in the month that put second-quarter growth at between 1.1 and 1.2 per cent.

Business investment jumped 1.8 per cent after falling 0.5 per cent the previous quarter.

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Consumer spending, which has been the mainstay of economic growth in recent quarters as businesses have lagged behind, slowed slightly but continued at a strong pace. It rose 0.7 per cent after rising 0.9 per cent in the first quarter.

The strong numbers are helpful for the conservative government as it prepares for a presidential election next year on promises of reducing unemployment and faster economic growth.