Unexpectedly strong economic growth in France helped power the euro zone's recovery in the three months to June, but the rate of expansion across the region may have reached a peak.

French gross domestic product rose by 0.8 per cent in the second quarter, the same rate of growth it achieved in the first three months of the year, according to data published yesterday by Insee, the French national statistics office.

Nicolas Sarkozy, France's finance minister, interrupted his cycling holiday to declare that the figures put France "at the head of the pack in terms of growth in Europe" and that government policies to promote consumer spending were "bearing fruit".

The news came as Mr Sarkozy decides whether to run for the leadership of the ruling centre-right UMP party.

In Germany, meanwhile, economic growth accelerated with GDP rising 0.5 per cent in the second quarter, up from 0.4 per cent in the previous three months.

Second-quarter euro zone growth figures today from Eurostat, the European Union's statistical agency, are expected to show a 0.5 per cent or 0.6 per cent increase - roughly the same as the 0.6 per cent growth rate reported for the first quarter.

But economists warned that the second half of 2004 could see a deceleration in the quarterly rates on the back of a slowing in the world economy.

"This is as good as it gets," said James Carrick, economist at ABN Amro.

The European Central Bank expects a 2004 growth rate of 1.7 per cent in the euro zone, although it may raise its forecast next month.

Also taking the gloss off yesterday's French and German figures was an unexpected 0.2 per cent drop in Dutch GDP in the second quarter.