France's goods consumption to recover in June but to contract in Q2

French consumption data is eagerly awaited following the two holiday months of July and August and should give us a clearer picture of the total contribution to GDP growth. 

"Our forecast is no change mom but a solid, if not spectacular, increase of 1.3% yoy for August. The INSEE consumer confidence indicator has recently increased from 93 to 97 between May and September. Energy consumption over the summer was likely slightly lower than last year when temperatures were below their long-term average", states Societe Generale. 

Noteworthy, though, were the figures for new car registrations, which were up 4.7% for July and August yoy, and back up our prediction of an increase in consumer spending more generally over the year.