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French Q1 GDP growth revised upwards to 0.4%

French GDP grew by 0.4% on a quarterly basis in the first three months of 2017, down from the 0.5% rise in the quarter ended December 2016, a second estimate by the National Institute of Statistics and Economic Studies showed on May 30.

Growth was 0.1 percentage point higher than a previous estimate published by the institute.

Exports declined 0.8% on a quarterly basis after a 1% increase in the previous period, while imports saw a 0.8-percentage-point increase in the quarterly growth rate to 1.4%. The foreign trade balance deducted 0.7 point from first-quarter GDP, the revised figures showed.

Production of goods and services also lost pace, achieving a 0.5% increase quarter over quarter compared with 0.7% in the previous period. Goods production contracted by 0.2% compared to the previous quarter, while services production growth picked up slightly to 0.7%, according to the second estimates.

First-quarter household consumption expenditure remained unchanged from the previous estimate at a 0.1% quarter-over-quarter increase after 0.6% growth in the fourth-quarter.

Investment accelerated, with gross fixed capital formation up 1.2% quarterly, compared to 0.5% in the previous period. The surge was mainly due to corporations, as their investments rose by 1.9% after a 0.9% rise in the previous quarter. Household investment continued to climb, rising 1% in the first quarter, compared to 0.9% in the period before.