French consumer spending growth at 5-month high
Consumer spending rose 0.4 percent month-on-month in June, while economists had expected a 0.5 percent increase. In May, spending has risen 0.1 percent, the same rate of growth in April. Latest growth was the strongest since January, when spending rose 0.5 percent.
Consumption of food products bounced back in June, rising 0.6 percent after remaining stable in May, and that of engineered products rose 0.3 percent in June, the same rate of increase in May.
Expenditure on textile, clothing and leather rose 0.4 percent after a 0.1 percent fall in May, while that on durables products rose 0.4 percent, slower than May's 0.7 percent increase.
Expenditure on household durables rose after two sluggish months. Growth in the spending on automobiles rose to 0.7 percent from 0.5 percent in May. On contrast, other durables purchases fell markedly, specifically in watch/jewelry.
Consumption expenditure on energy products declined 0.1 percent in June, the same rate of decrease in the previous month.
Year-on-year, household spending increased 1.4 percent in June, slower than a 1.6 percent growth expected by economists.
During the second quarter, consumer spending dropped 0.1 percent after a strong 1.5 percent gain in the previous quarter. Spending on energy declined 2.2 percent offsetting a 0.8 percent rise in food consumption. ■