French growth slowed more sharply than expected in the second quarter, according to data released today.
French gross domestic product rose at a quarterly rate of 0.1 per cent, down from 0.4 per cent in the first three months of this year and below consensus forecasts of 0.3 per cent, data from national statistics office INSEE showed.
Only marginally better than German stagnation in the same period, it was France's weakest showing since the third quarter of 2004 and worse than both the euro zone's 0.3 per cent quarterly growth and Italy's strong rebound out of recession.
Sluggish consumer demand was blamed for hindering French growth, but it is helping to curb inflation in the bloc's second biggest economy. July consumer prices posted a surprise monthly fall despite a jump in energy costs, separate INSEE data showed.
Higher oil prices and renewed appreciation of the euro, which could hurt French export competitiveness, are risks to the economic outlook but for the time being analysts still expect better French growth figures in the coming quarters.
Weak industrial production figures released earlier this week and a slowdown in consumer spending reported previously had prepared the ground for subdued growth in the second quarter.