 French buyers are stocking up on household equipment |
French consumers increased their spending by 1.5% in January, a figure which bodes well for the country's economic growth, figures revealed. The National Statistic Institute (INSEE) added that consumer spending in January rose 3.8% on a year-on-year basis.
Rising sales of household equipment were behind the increase.
The INSEE also said that French consumer prices fell 0.6% in January, but were up 1.6% on an annual basis.
Fewer car sales
Despite the general increase in spending in January, French households bought fewer cars in January.
According to the INSEE, car sales fell 2.8% in January, following a fall of 0.6% in December. But on a year-on-year basis, the sector still saw a sales increase of 6.5%.
Consumer spending fuelled France's economic growth in the last quarter of 2004 and analysts expect that it will continue to support the economy.
"It's a growth that will remain fragile and vulnerable to risks like a strong rise in long-term interest rates, tension in the oil price," Emmanuel Ferry, from Exane BNP Paribas told Reuters news agency.
Italian confidence
 Italians consumers are more confident |
Meanwhile in Italy, consumer confidence rose to its highest level since October 2004. Economic research group ISAE has said that Italian consumer confidence rose to 104.4 from 103.3, despite a slight deterioration in short-term sentiment.
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