The French economy's growth during the second quarter far surpassed economists' expectations to grow at its fastest pace in almost six years.
The GDP of the euro zone's second biggest economy rose by 1.1-1.2 per cent in the second quarter compared with the first three months of the year, the strongest quarterly growth since the fourth quarter of 2000, INSEE said today.
The early estimate was well above the consensus forecast that growth would pick up to 0.7 per cent from 0.5 in the first quarter and triggered a decline in euro zone government bond futures as economists revised up their growth forecasts.
The surprising strength of economic activity diverted attention from a less startling inflation report, which showed July consumer prices fell 0.2 per cent from the previous month, with the annual rate unchanged from June at 2.2 per cent.
Although the GDP estimate does not include a breakdown of the components of growth, consumer spending has been the mainstay of economic expansion for some time.
Spending rose at its fastest pace in a year in June as consumers snapped up cars and household goods, building on an already strong performance in May when purchases of televisions before the soccer World Cup boosted spending.