France's Economy Gains Momentum in Second Quarter

France's economy grew by 0.3% in the second quarter, as confirmed by INSEE. Exports rose by 0.5%, especially in pharmaceuticals, while household consumption slightly improved, balancing food and services expenditure against a decline in energy spending.

France's economic growth gained momentum in the second quarter, reflected by a 0.3% increase, the final data from statistics office INSEE confirmed on Friday. This reading aligns with the preliminary estimates and meets the expectations of a panel of 21 economists surveyed by Reuters.

The modest rebound in export activities, recording a 0.5% rise, played a significant role in this growth. The increase was largely influenced by the strong performance in the pharmaceuticals sector. In contrast, household consumption, a critical component of French economic expansion, experienced a mild recovery. It stabilized at 0.0% from -0.3% in the preceding quarter, buoyed by higher spending on food and services even as expenditure on energy fell.

This performance indicates a delicate balancing act within France's economy, highlighting the resilience in consumer behavior despite pressures in energy costs.

(With inputs from agencies.)