French consumer spending unexpectedly falls in July

Consumer spending in France unexpectedly fell during the month of July as households cut back on cars and home furnishing expenditure.

France’s Consumer spending fell 0.2 percent month-over-month in July, slower than June's 0.8 percent decline, data released by statistics agency INSEE showed Wednesday. It was the fourth consecutive monthly decline. In contrast, economists had expected a 0.4 percent rise for the month.

In July, expenses on durables decreased notably by 2.2 percent, reversing a 0.6 percent increase in June. At the same time, consumption on energy rebounded by 1.3 percent in July, after a 6.4 percent sharp fall a month ago.

Further, on an annual basis, consumer spending rose 0.5 percent in July, below economists' forecast for a 1.1 percent climb. The data showed a 1.2 percent decline in spending on manufactured goods in July. Within the manufactured goods segment, spending on autos dropped 1.9 percent and home furnishings was down 3.1 percent.

Meanwhile, the weakness in consumer spending at the start of the third-quarter indicates the French economy lacks the momentum for a strong rebound after zero growth in the second quarter.