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French economy grows 0.5% as consumer spending roars back

France's Q1 GDP figure was better than even the most optimistic forecast
France's Q1 GDP figure was better than even the most optimistic forecast

The French economy grew 0.5% in the first quarter of 2016, the INSEE national statistics agency said in a preliminary estimate today. 

France's economy was boosted by the strongest increase in consumer spending since 2004 and the GDP figure was better than even the most optimistic forecast.  

In a preliminary reading of gross domestic product for the quarter, INSEE said the €2 trillion economy had accelerated from the 0.3% growth posted in the previous three months.

A pick-up in business investment helped to offset lower exports and stocks.

A poll of 30 analysts surveyed by Reuters had forecast 0.4% growth for the euro zone's second-largest economy in the three months to March, with the lowest estimate at 0.1% and the highest at 0.4%. 

The data appeared to lend some credence to President Francois Hollande's assertion this month on prime-time television that "things are going better", coming at the end of a week that saw the number of jobless people drop by the most since the dot com boom.