The French National Statistical Institute (INSEE) is scheduled to release consumer spending data today. Societe Generale expects the consumer spending on goods to increased by 0.7% mom and1.5% yoy in June.



"The economy's energy consumption is likely to recover after the weakness recorded in the last two months and should increase by 2.6% mom in June. The non-energy component is also likely to feed through, on the back of summer sales and buoyant auto sales", according to SocGen.



At a aggregate level, the bank estimates the goods consumption to be contracted by 0.1% qoq in Q2. This is mainly attributable to energy consumption which is expected to have dropped by 1.7% qoq. As far as non-energy goods consumption is concerned, it likely rose by 0.2% qoq, mainly boosted by the automobile sector.



Household consumption was the main growth driver in Q1, boosted by a combination of lower oil prices and low inflation. Further out, SocGen expects consumption to ease over the coming months, on the back of increasing oil prices and recovering inflation.