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World Cup boosts French consumer spending

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World Cup boosts French consumer spending

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People buying new TVs to watch the World Cup meant French consumer spending on manufactured goods rose more strongly than expected last month.

Year-on-year, consumer spending was up 1.9 percent in May.

Spending on household appliances surged 7.3 percent from April.

With the French team out of the contest, it is unlikely there’ll be a prolonged surge in TV sales.

And analysts said the retail outlook is gloomy with many French shoppers holding back on major purchases given doubts about the economy and fears of possible government budget cuts.

At the same time that the national statistics office INSEE released the consumer spending figures, it said the French economy is expected to grow 1.4% this year following 2.5% contraction in 2009.