| Actual | Previous | Revised | |
|---|---|---|---|
| Month over Month | -0.6% | 0.3% | 0.4% |
| Year over Year | -2.0% | -0.9% |
Market Consensus Before Announcement
Spending on manufactured goods slipped by 0.6 percent in August, reversing an upwardly-revised 0.4 percent increase in July (originally reported as a 0.3 percent gain). Outlays fell by 2.0 percent over the same period of last year.
Clothing sales accounted for much of the August decline, slumping by 2.3 percent month-over-month, while spending on durable goods was unchanged.
Despite the August decline, spending rose by 1.0 percent in the three months to August, which raises the prospect of consumer spending making a positive contribution to third quarter gross domestic product after exerting a negative effect in the previous period.
The latest data take the RPI to minus 26 from minus 10 previously, while the RPI-P moved to minus 20 from minus 15 previously.
Clothing sales accounted for much of the August decline, slumping by 2.3 percent month-over-month, while spending on durable goods was unchanged.
Despite the August decline, spending rose by 1.0 percent in the three months to August, which raises the prospect of consumer spending making a positive contribution to third quarter gross domestic product after exerting a negative effect in the previous period.
The latest data take the RPI to minus 26 from minus 10 previously, while the RPI-P moved to minus 20 from minus 15 previously.
Definition
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 as part of the report on total goods spending.
Description
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.
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.
