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FR: Consumer Mfgd Goods Consumption
| Actual | Previous | Revised | |
| Month over Month | 0.3% | 0.0% | -0.3% |
| Year over Year | 0.3% | 0.4% |
Highlights
Households spent 0.3 percent more on manufactured goods in August than they did in July when spending fell 0.3 percent, and was also 0.3 percent higher than a year ago.
After a 2.6 percent reduction in July, consumers spent 1.8 percent more on textiles and clothing. The pattern was reversed for household durables which saw spending fall 2.3 percent in August after a 2.7 percent increase in July, likely due to consumers purchasing big-ticket items before US tariffs took effect in August.
Still, spending on transport equipment rose 1.2 percent in August after falling 1.7 percent the previous month, although it fell 1.5 percent from August of last year. Spending on energy, after falling 1.7 percent in July month-on-month, were for the most part stable in August, falling 0.1 percent.
Overall spending which includes food and energy was up 0.1 percent in August after a 0.6 percent drop in July. Compared to their spending a year ago, consumers bought 0.8 percent less.
Current spending shows consumers are still being cautious. That dynamic will likely hold until there is more clarity around the domestic political situation and planned austerity measures. As a result, it's not the consumer who will be helping boost the economy anytime soon.
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.