PARIS (Reuters) – French economic growth slowed slightly more than expected in the first quarter as business investment and exports eased, a first estimate from the INSEE statistics agency said on Friday.
The euro zone’s second-biggest economy grew 0.3 percent in the first three months – the slowest rate since the third quarter of 2016 – after expanding 0.7 percent in the final three months of last year, INSEE said.
Economists had on average expected growth of 0.4 percent, with forecasts ranging from 0.2 percent to 0.6 percent in a Reuters poll of 30 economists.
Consumer spending growth, traditionally the main motor of the French economy, grew only 0.2 percent in the first quarter despite exceptionally cold temperatures boosting energy consumption, the same rate as in the previous quarter.
Meanwhile businesses slowed investment growth to 0.5 percent from 1.6 percent in the previous three months, while exports dipped marginally after a spike in the previous quarter. Since imports were flat, foreign trade had no impact on overall growth.
For a graphic of GDP by contributions: reut.rs/2oQ8Pxu
For further details from INSEE: here
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