French household spending rose faster than expected in April, suggesting consumer spending is still supporting economic growth in sharp contrast with the pattern in Germany.

Household spending on manufactured goods in the eurozone's second largest economy rose by 1.0 per cent, according to the INSEE statistical office, after a revised 0.5 fall in March. That suggests that French growth in the second quarter might not be as bad as feared. “It is still too early to draw a solid conclusion but the possibility of a modest growth rebound during the second quarter has risen,” said Eric Barande, economist at the Royal Bank of Scotland.