French consumer spending dropped unexpectedly in December as households cut back across the board, statistics showed Tuesday.
Consumer spending in the eurozone’s second largest economy fell 1.2% on month in December while economists polled by The Wall Street Journal were expecting a 0.6% increase.
The consumer spending figure shows a soft spot in the French economy amid a broader acceleration of growth. Statistics earlier Tuesday showed strong growth in business investment helped drive an economic expansion of 1.9% in 2017, the largest since 2011.
In December, consumers cut spending on food and manufactured goods by 1.4% a piece, Insee said.
Still, the statistics agency revised its November figures upwards to a 3% month-on-month expansion from 2.2% previously. Quarter-on-quarter, spending in the last three months of the year was down only 0.1%, Insee said.
Source: Dow Jones