French consumer spending rebounds in July, Q2 GDP growth unrevised
Consumer spending climbed 0.7% month-over-month in July, reversing a 0.7% drop in June.
Consumption on engineered goods bounced back by 1.2% in July, following a 0.7% drop in the prior month. Similarly, total food consumption rose 0.8% after a 1.0% fall.
Meanwhile, energy consumption fell for the second straight month by 0.5%.
On a yearly basis, consumer spending grew 2.1% in July, above the 1.6% increase economists had expected.
France's economic growth held steady in the second quarter as initially estimated, latest figures from the statistical office Insee showed Tuesday.
Gross domestic product expanded 0.5% sequentially, the same pace of growth as seen in the first quarter. That was in line with the flash data published on July 28.
During the fourth quarter of the previous year, the rate of growth was also 0.5%.
On the expenditure-side, household spending growth improved to 0.3% from 0.1%. Likewise, government spending climbed 0.4%, following a 0.3% rise a quarter ago.
Gross fixed capital formation grew at a slower pace of 0.7% after expanding 1.3%.
Exports rebounded 2.5% after a 0.9% fall, while import growth slowed to 0.4% from 1.1%.
The foreign trade balance contributed positively to GDP growth by 0.8 points. Conversely, changes in inventories contributed negatively by 0.5%. ■