The French economy has avoided falling into recession, thanks to strong growth in consumer spending, according to figures published this morning. French GDP rose a provisional 0.3pc in the first quarter after a fourth quarter decline of 0.1pc, statistics office Insee said. A recession is defined technically as two consecutive quarters of negative GDP growth. Germany, Europe's largest economy, Italy and the Netherlands all contracted in the first quarter of the year.
Household consumption surged 0.9pc after a 0.3pc rise in the previous period, according to Inse, after the government ignored the Growth and Stability Pact rules on budget deficits and cut taxes, boosting consumers' spending power. Manufacturing output rose 0.4pc after a 0.3pc fourth quarter decline. Exports of goods and services fell 0.7pc, reflecting the impact of the stronger euro, while imports rose 0.7pc. //www.fxcentre.com