French growth accelerated more than expected at the start of the year, as the strongest increase in consumer spending since 2004 and a pick-up in business investment offset a drop in exports, a boost to President François Hollande who has been struggling to convince voters their lives are "going better", reports Reuters.
The French economy grew 0.5 percent in the first quarter, beating even the most optimistic forecast in a Reuters poll, as consumers splurged on clothes, cars and housing equipment, the INSEE national statistics agency said in a preliminary estimate on Friday.
Consumer spending rose 1.2 percent over the three months, outweighing a weaker contribution from trade and business inventories.
In a preliminary reading of gross domestic product for the quarter, INSEE said the 2 trillion euro economy had accelerated from the 0.3 percent growth posted in the previous three months, with a 1.6 percent increase in corporate investment offering hope the stronger growth could be sustained.
The stronger French performance also contrasted with a slowdown in the United States and Britain, which both reported lower growth earlier this week.