German economic growth slower than expected, France's growth faster

The German economy grew at a slower 0.3% than the 0.5% that was expected in the first quarter, while France over-delivered, growing GDP 0.6% in the quarter versus the 0.4% consensus estimate and the 0.1% in the prior quarter.

Germany's unexpected slowdown came after 0.7% gain in the fourth quarter of 2014, meaning the economy expanded by roughly 2% in the six months around winter.

Economists said France's jump, its highest in nearly two years, appeared to be a one-off deviation from its subdued trend with volatile inventories a major contributor and cheap oil was an important driver of growth in consumption in both countries.

The surprise French result and disappointing German increase should be enough to underpin a satisfactory growth rate in the Eurozone as whole in the quarter, Berenberg said.

"As a whole, the Eurozone looks set to have grown slightly faster than major international rivals such as the UK and the US in this quarter, helped also by the 0.9% quarterly growth rate in the developed world's new growth star Spain."

The bank noted that net exports fell in both countries as the positive effect of the weaker euro was more than offset by a surge in imports as consumers spent the oil windfall on imported goods as well.

Barclays said: "Although this release is good news for France, we do not believe it marks the beginning of a strong and sustainable rebound in economic activity."

It expects a French retreat in the second quarter as the boost to consumption from lower oil prices moderates.

"We expect French growth to remain in line or slightly below trend this year as the drag stemming from tight fiscal policy and labour market weakness is likely to persist."