French consumer spending fell 1.2 per cent month-on-month in February after a 2.5 per cent drop in January, data showed today, in a sign the euro zone's second largest economy got off to a weak start to 2010.
The consensus forecast in a Reuters survey of economists was for consumer spending on manufactured goods to rise by 0.3 per cent month-on-month in February.
Consumption accounts for over half of gross domestic product (GDP) in France, and analysts say rising unemployment and concerns about the general economic outlook have put a brake on household spending.
A reduction in the fixed winter sales period hit clothing and textile sales, which fell 5.4 per cent after rising in the two previous months, INSEE said.
Consumption of durable goods fell 0.8 per cent in February after a 7.7 per cent slump in January, while purchases of cars were down 1.5 per cent following a 16.7 per cent slide a month earlier as scrappage incentive schemes are whittled down.
Reuters
