France's goods consumption to recover in June

The French National Statistical Institute (INSEE) is scheduled to release consumer spending data today. Societe Generale expects the consumer spending on goods to increased by 0.7% mom  and1.5% yoy in June. 

"The economy's energy consumption is likely to recover after the weakness recorded in the last two months and should increase by 2.6% mom in June. The non-energy component is also likely to feed through, on the back of summer sales and buoyant auto sales", according to SocGen.

At a aggregate level, the bank estimates the goods consumption to be contracted by 0.1% qoq in Q2. This is mainly attributable to energy consumption which is expected to have dropped by 1.7% qoq. As far as non-energy goods consumption is concerned, it likely rose by 0.2% qoq, mainly boosted by the automobile sector. 

Household consumption was the main growth driver in Q1, boosted by a combination of lower oil prices and low inflation. Further out, SocGen expects consumption to ease over the coming months, on the back of increasing oil prices and recovering inflation.