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French Feb consumer spending falls sharply

Published 03/24/2009, 04:12 AM
Updated 03/24/2009, 04:16 AM

PARIS, March 24 (Reuters) - French February consumer spending fell at its fastest pace in over a year and business confidence stayed stuck at a record low in March, data showed on Tuesday.

Consumer spending on manufactured goods fell 2.0 percent month-on-month, national statistics office INSEE said, far worse than expectations for a fall of 0.8 percent and following a downwardly revised increase of 1.7 percent in January.

The number was pulled down by falling purchases of household equipment and clothes. [ID:nPAB004715]

Another INSEE report showed business morale in March stayed at 68, the lowest point ever recorded as bosses fretted about empty order books. [ID:nPAB004716]

A separate report, the Markit/CDAF composite purchasing managers' index, showed that private sector activity declined at a slower pace in March but firms cut jobs at a record rate, casting doubt over the outlook for the months ahead. [ID:nSAC014199] (Reporting by Anna Willard; Editing by Mike Peacock)

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