French Economy Contracted in Q1/22 as Inflation Pressures Households

The French economy contracted more than expected in the first quarter as consumers face difficulties coping with rising inflation.

France, the second-largest economy in the eurozone, contracted by 0.2% in the first quarter compared with the fourth quarter of 2011, according to INSEE.

Consumer spending fell 1.5% in the first quarter as households curbed spending.

The spread of Omicron disease brought economic activity to a standstill at the beginning of the year. The surge in inflation, which reached a record 5.8% in May, has affected household spending.

In addition, INSEE said consumers cut their spending in April by 0.4%.

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