French consumer spending slumps: official data

23rd July 2010, Comments 0 comments

French consumer spending slumped in June after sales of manufactured goods got a boost in May ahead of the soccer World Cup, official data showed on Friday.

The national statistics institute INSEE said household spending fell 1.4 percent from May, when the indicator rose 0.6 percent.

For the second quarter, spending on manufactured goods -- which accounts for about 25 percent of total consumption -- was down 0.9 percent from the first three months of the year when it fell 1.9 percent, INSEE said.

The fall in June "reflects a technical reverse which was expected after the sharp increase in sales of television in May and the temporary effect of a later start for the summer sales," INSEE said.

For 2010, INSEE expects total household consumption to increase by only 1.2 percent, better than the 0.5 percent and 0.7 percent gains made in 2008 and 2009, but less than pre-crisis levels of around 2.5 percent.

The INSEE forecast, however, would be consistent with the government's overall economic growth estimate for this year of 1.4 percent.

© 2010 AFP

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