FOREX ALERTS >>
DailyFX Plus Login

fundamental alert

Article

French Consumer Spending Dropped 0.4%, Fueling Growth Fears
Friday, 21 November 2008 06:19:09 GMT  |  DailyFX Research
Delicious
Facebook

French October consumer spending dropped 0.4% m/m, after rising 0.5% m/m in the previous month. The annual rate decelerated to 0.7% y/y from 1.4% y/y in September. Spending on cars is still higher than a year ago and at 1.9% y/y outperforms overall spending. However, this is down from 4.4% y/y in September. France has so far escaped a technical recession, but data does indicate ongoing growth weakness into Q4.
Meanwhile, The French manufacturing PMI dropped to 37.9 in November, down from 40.6 in October and below Bloomberg consensus for a reading of 40.0. At the same time the Services PMI declined to 46.6 from 47.5 in the previous month. The drop further below the 50 point no change mark suggests ongoing contraction in both the services and manufacturing sectors and is not good news for Q4 GDP growth in France and the Euro-Zone. So far France has escaped a second quarter of negative growth, but Q4 data are likely to look weaker than Q3.

More Articles

Feedback Form