French consumption rebounds in January

French households´ consumption expanded more strongly than expected in January, boosted by energy purchases and those of household goods.

Total household consumption increased 0.6% month-on-month at the start of the year, following a rise of 1.0% in the month before.

In comparison with a year ago consumption stood 0.6% higher.

That was better than the advance of 0.6% month-on-month and 0.3% year-on-year which economists had penciled in.

Energy consumption grew by 3.4% and that of manufactured goods by 0.7%, while purchases of food declined by 0.8%.

"A strong report, but the headline was flattered by a sharp rebound in energy consumption following a plunge in utility spending in the fourth quarter due to unusually warm weather," Pantheon Macroeconomics said in a research note sent to clients.

The think-tank also called attention to how outlays on manufactured goods rebounded in January.

"On a sequential basis, today’s household goods consumption data imply a +0.9% carry over for Q1 16 (after -0.5% in Q4 15), broadly consistent with our forecast of a rebound in private consumption from -0.2% q/q to +0.5% q/q, and thus an acceleration of GDP from 0.3% q/q to 0.4% q/q in Q1 16," Barclays´s Francois Cabau said in a research report sent to clients.