Consumer Manufactured Goods Consumption

 
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The Consumer Manufactured Goods Consumption releases data on the total household consumption expenditure effectively spent by households after subtracting reimbursements or the partial coverage of expenditure by the French government. It is an economic indicator of how much consumers are spending on household durable goods like autos and furniture.[1] The report tracks the month-over-month and year-over-year changes in the level of consumption.

Measures of Consumer Manufactured Goods Consumption

Items included in the aggregate consumer manufactured goods consumption are:

  1. consumer durables like transportation equipments such as automobiles and motorcycles and household durables like household appliances, consumer electronics and furniture
  2. textile and leather goods
  3. other manufactured goods that include medical products, tires, auto spare parts, publishing like press, books and musical recordings, watches, jewelry and miscellaneous items.[2]

Certain medical products like pharmaceuticals, orthopedic equipment and prescription lenses are excluded from the computation because purchases of these items are partially refunded by the Social Security system. These refunds are categorized under general government expenditure.[3]

Why is it important

This report is a measure of retail sales and is unique to France. The monthly release aims to provide a short-term picture of current consumer spending behavior. The data is vital to stock investors, especially to those who invest in retail companies. Increase in consumer consumptions mean strong economic growth, and that is good news for the stock markets. As for bond markets, the concern is more of whether economy's growth is heating up and that inflation is imminent.[4]

References

  1. National Institute of Statistics and Economic Studies - France
  2. National Institute of Statistics and Economic Studies - France
  3. National Institute of Statistics and Economic Studies - France
  4. Econoday: 2010 Economic Calendar


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