French Q2 growth revised up to 1.1% By Reuters


© Reuters. FILE PHOTO: People walk on the esplanade of La Defense in the financial and business district of La Defense, west of Paris, France March 26, 2018. REUTERS/Gonzalo Fuentes

PARIS (Reuters) – The French economy rebounded slightly more strongly than first thought in the second quarter as consumer spending recovered after a coronavirus lockdown, the INSEE official statistics agency said on Tuesday.

The euro zone’s second-biggest economy grew 1.1% in the three months to the end of June after showing no growth the previous three months, INSEE said, revising the second quarter rate up from 0.9%.

The increase leaves the economy 3.2% below pre-crisis levels reached at the end of 2019, a gap the government expects to be closed before the end of this year.

Activity recovered quickly in the second half of the second quarter as the economy emerged from lockdown and a vaccination programme gained speed.

Consumer spending, the traditional motor behind the French economy, rose 1.0% in the second quarter while business investment was up 1.9%, INSEE said.

However, consumer spending got off to a soft start in the third quarter with monthly data for July from INSEE showing that it fell 2.2% from June, more than the 0.5% fall expected on average in a Reuters poll of economists’ expectations.

The government expects the economy to grow 6% this year after contracting 8.0% last year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Share Market Today
Logo