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Financial News: France Household Consumption Unexpectedly Declines In Febr

France Household Consumption Unexpectedly Declines In February

03/29/2019 - 04:27:00 (RTTNews)

(RTTNews) - France's household consumption decreased in February, defying expectations for further increase, as expenditure on food and energy declined, preliminary data from the statistical office INSEE showed on Friday.

Household consumption fell 0.4 percent month-on-month, while economists were looking for a 0.2 percent gain.

January's 1.2 percent gain was revised up to 1.4 percent. Consumption shrunk 1.5 percent in December.

Spending on food decreased for a second straight month, down 0.1 percent in February after a 0.9 percent slump in January.

Expenditure on energy decreased 3.3 percent after a 6.5 percent surge at the start of the year, mainly due to the drop in electricity consumption, thanks to mild temperatures.

Purchases of engineered goods increased 0.6 percent. Spending on durable goods increased 0.6 percent, driven by a rise in second-hand car purchases.

On a year-on-year basis, household consumption fell 1.8 percent in February.

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