French GDP edges past forecasts in first quarter of 2017

A sharp pick-up in gross capital formation helped to offset a slowdown in household spending in France at the start of the year.

The result was a 0.5% rate of quarterly expansion in French gross domestic product over the first three months of 2017, revised data from INSEE showed.

That was better than the 0.4% pace economists had projected.

Gross capital formation accelerated to a 1.2% clip in terms of quarter-on-quarter rates of change from growth of 0.6% observed in the final three months of 2016.

Household consumption on the other hand slowed down, with the rate of growth falling from 0.6% to 0.0%.

Foreign trade was again a drag on gross domestic product, with net exports down by 0.6% after a gain of 0.1% in the previous quarter.