European shares recorded their first weekly loss since mid-December on Friday as disappointing U.S. economic data pushed investors to cash in on a recent, brisk rally.

U.S. GDP expanded at a 2.8 percent annual rate, a touch below economists' expectations for a 3.0 percent rate, with a strong rebuilding of inventories and weak spending on capital goods hinted at slower growth this year in the world's largest economy, Europe's largest export market.

The FTSEurofirst 300 index <.FTEU3> index of top European shares provisionally closed 1 percent lower at 1,041.61 points after closing in overbought territory on Thursday, the index's 14-day relative strength index showed.

The market was overbought and the U.S. data provided an excuse for profit taking, Duarte Caldas, a market strategist at IG Markets said, warning of further volatility ahead.

Auto stocks <.SXAP> were the worst performers, falling 1.9 percent, after the U.S.'s second-largest auto maker, Ford Motor Co reported a lower-than-expected fourth-quarter profit, due to higher commodity prices and weak results from operations in South America and Europe.

(Reporting By Francesco Canepa)