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French March consumer spending up more than forecast

Published 04/24/2009, 03:06 AM
Updated 04/24/2009, 03:08 AM

PARIS, April 24 (Reuters) - French consumer spending rose by a stronger-than-expected 1.1 percent in March, helped by a rise in car and clothing sales, national statistics office INSEE said on Friday.

The monthly rise was well above a consensus forecast for a 0.3 percent rise and INSEE also revised the previous month's figure to show a 1.8 percent fall instead of the 2.0 percent fall earlier reported.

There were strong monthly rises in car sales, which were up 2.9 percent, continuing the improvement seen in previous months, and in textile and leather sales, which rose 3.5 percent.

By contrast, household equipment sales, which have suffered as housing prices have fallen, were down 0.5 percent, the report showed.

The figures added to other positive signs in the retail sector, coming two days after one of France's biggest retailers, Casino, said it was seeing improving trends overall, helped by promotions and good results in the Easter period.

Speaking in Washington, shortly before the figures were announced, Economy Minister Christine Lagarde said there were "interesting little signals" in the French economy, with signs of improvement in the car and real estate sectors.

In a statement, she said the figures encouraged hopes of a pick up over the medium term and showed the effects of the government's stimulus measures. However she added that there would be a significant contraction in 2009 and it would take several quarters for the economy to recover. (Reporting by James Mackenzie, editing by Mike Peacock)

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