France Confirms Exit from Recession but Investment Falls
France exited recession in the second quarter of the year with economic growth of 0.5 percent, updated figures confirmed Friday, but investment shrank, raising concerns the recovery remains fragile.
The rebound for Europe's second-largest economy in the April-June period followed a six-month economic slide -- though revised data released Friday said the gross domestic product (GDP) contraction in the first quarter was 0.1 percent, instead of the 0.2 percent initially announced.
But investment, which economists say is a key sign of the recovery's strength, fell 0.4 percent in the second quarter, continuing its slide after a 1.0-percent contraction in the first three months of the year, said national statistics agency INSEE.
Household purchasing power expanded by 0.4 percent in the second quarter, though that pace was down from 0.8 percent in the previous quarter, INSEE said.
Key drivers of the recovery included household consumption spending, which rose 0.4 percent in the second quarter, and government spending, which rose 0.7 percent.
The French government is predicting economic growth of 0.1 percent for 2013.
Source: Agence France Presse
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