France November consumer spending likely to drop

France consumer spending is expected to record steadiness on month on month basis as per market consensus, however there are mixed expectations by some market participants that it might decline in this month, while the year on year expectations remain unchanged overall.

The primary reasons for the lack in consumer spending are contributed to above average temperatures and the recent terrorist attacks in Paris, which have provoked an opposite effect on energy consumption, particularly in petroleum products with increase of usage of cars.

"We expect consumer spending in France to have fallen 1.8% mom in November...Looking ahead, we expect the effect of the Paris attacks to fade, with history showing that the economic impact of such events is usually transitory in nature", says Societe Generale in a research note.