DUBLIN: European consumer spending rose for the first time in more than a year in the second quarter and exports fell at a slower pace, helping to ease the worst recession in more than 60 years.

Household spending in the euro area increased 0.2 percent after declining 0.5 percent in the first quarter, the European Union's statistics office in Luxembourg said yesterday. Exports fell 1.1 percent after an 8.8 percent drop in the previous three months. Gross domestic product fell 0.1 percent, the office said, confirming an initial estimate published on Aug 13.

European companies from France's Vivendi SA to Germany's Henkel AG have reported higher earnings, suggesting government efforts to encourage spending and fight the economic slump are gaining traction. Confidence in the economic outlook increased for a fifth month in August. European Central Bank President Jean-Claude Trichet has said that rising unemployment may hurt the recovery.