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Last Updated: Thursday, 28 September 2006, 10:46 GMT 11:46 UK
Growth spurt for French economy
A Carrefour supermarket in Toulouse, south western France
Rising consumer spending helped drive the French economy
The French economy grew at 1.2% during the second quarter - its fastest pace in five and half years - revised official figures have shown.

Growth in the quarter was helped by a strong increase in business investment and consumer spending.

The growth spurt is the latest evidence of the current revival trend in Europe's biggest economies.

Elsewhere, Germany's modest recovery continued, with unemployment dipping by 134,000 to 4.24 million in September.

French boost

Insee, the French national statistics office, revised its previous estimate for growth between April and June up to 1.2% from 1.1%. However, first-quarter growth was revised down to 0.4% from 0.5%.

Experts have questioned whether France's fast pace of growth can be sustained - highlighting a downward revision in exports as a signal of a potential slowdown.

Italy remains one of the countries lagging behind its European counterparts.

New official data showed Italy's trade deficit with non-EU countries soared to 1.93bn euros in August, from 373m at the same time last year, driven by a surge in Chinese imports.




SEE ALSO
UK economic growth revised down
27 Sep 06 |  Business
Weaker exports hit French morale
25 Sep 06 |  Business
German investor confidence dips
19 Sep 06 |  Business
Germany trims problem budget hole
24 Aug 06 |  Business
French business confidence grows
25 Jul 06 |  Business
Italian public debt 'a disaster'
23 May 06 |  Business

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