French GDP shrank 0.1 percent in the first quarter, official data showed Friday, a downward revision from previous estimates that analysts warn could herald a recession for the eurozone's second-biggest economy.
Statistics office INSEE had initially reported zero growth for the quarter, but a sharper decline in consumer spending than expected was "an unpleasant surprise", said Dorian Roucher, the agency's head of forecasting.
He noted in particular "very bad figures for home renovations: it's rare to see this sector decline so much", Roucher told journalists, with overall construction spending down 1.7 percent.
Consumer spending overall was dented by the surge in fuel prices since the Iran war throttled Gulf oil and gas shipments, falling 0.2 percent after rising 0.3 percent in the fourth quarter of last year.
Economists said the figures do not bode well for French growth this year, with some already expecting a further GDP slowdown in the current quarter. That would push France into a technical recession of two straight quarters of contraction.
