French consumer spending rose by a stronger-than-expected 1.6 percent in June, as clothing sales bounced back from a sharp drop the month before, data from statistics office INSEE showed on Tuesday.
Spending on manufactured goods fell 1.0 percent in May, revised from an originally reported fall of 0.8 percent, pulled down by weak sales of clothing and textiles. Economists polled by Reuters had forecast consumer spending to rise by 0.8 percent in June.
Thursday's data showed a strong recovery in spending on textiles and leather goods, which rose 8.3 percent after a revised drop of 10 percent in May. But the figures left the overall picture on household spending during the second quarter barely positive with a 0.1 percent rise after a 1.2 percent rise in the first quarter.
Domestic household spending has been the mainstay of the French economy, compensating for persistent weakness in the export sector, and measures to maintain consumer purchasing power have been a top priority for new President Nicolas Sarkozy.
Spending on automobiles was down 2.7 percent, highlighting one of the longstanding difficulties facing French carmakers. Spending on household equipment rose 2.7 percent after a 2.1 percent rise the month before, bringing the year-on-year rise to 16.0 percent.