|Month over Month||0.3%||0.2%|
|Year over Year||2.5%||1.7%||1.6%|
Household spending on manufactured goods rose 0.3 percent on the month in July following an unrevised 0.2 percent gain in June. This was the fourth consecutive gain and lifted annual growth of purchases from 1.6 percent to 2.5 percent.
July's modest advance was led by household goods and textiles which posted monthly rates of 2.1 percent and 2.0 percent respectively. However, autos saw a 1.3 percent decline and the other manufactured goods sector was down 0.2 percent.
Total spending on goods also increased 0.3 percent versus June when it was up 0.4 percent.
Consumption of manufactured goods by consumers is an indicator of consumer spending for household durable goods such as autos and furniture. The data are released separately but also as part of the measure of total goods spending.
This indicator is a measure of retail sales and is unique to France. It measures consumer spending for household durable goods such as autos and furniture. The data are seasonally and workday adjusted. These adjustments eliminate the fluctuations that are solely due to changes in the number of working days. The data appear to be particularly sensitive to the number of worked Saturdays. With consumer spending a large part of the economy, market players continually monitor spending patterns. Retail sales are a measure of consumer well-being.
The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.
Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps auto sales are especially strong or apparel sales are showing exceptional weakness. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.
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