PARIS (MNI) – French retail sales fell in April, with declines in
nearly all categories, especially new car sales, the Bank of France
estimated Monday on the basis of its monthly business survey.
The central bank said seasonally adjusted retail sales volumes
dropped 1.2% in April but were still 0.9% higher on the year. While food
sales eased only 0.1% on the month, manufactured goods turnover was down
1.9%.
New car sales dropped 11.3% in April, though they were still 4.8%
above the previous-year level. The April drop followed a spurt in new
car sales registered in March, but that was largely an accounting effect
due to a flood of invoices from cars ordered at the end of last year
before the reduction in public subsidies.
Among other categories, higher turnover for shoes and
do-it-yourself products was offset by declines elsewhere, particularly
for furniture, household appliances and clothing and textiles.
The results at the start of 2Q point to a further slide in spending
on manufactured goods after a 1.9% downturn in 1Q, when auto sales
dropped 7.4% after a 7.7% spike in 4Q. Total private consumption
stabilized in 1Q, thanks in part to a 2.9% upturn in energy outlays
during the harsh winter.
In its spring economic outlook, the national statistics office
Insee forecast a 1.5% drop in manufactured goods spending in 2Q and a
0.2% dip in total private consumption.
The weakness in consumption, due to the squeeze on real incomes
from slowing wage gains, rising prices and the reduction in public
supports, will accentuate the drag from contracting investment, leaving
the economy dependent on growth impulses from foreign demand and,
eventually, a turnaround in the inventory cycle.
–Paris bureau, +331 4271 5540; Email: stephen@marketnews.com
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