French Consumer Spending Slump Clouds Hopes of Economic Rebound

(Bloomberg) -- French consumer spending unexpectedly dropped in January, suggesting the euro area’s second largest economy may struggle to rebound quickly from a contraction at the end of 2019. Spending on manufactured goods slumped as emission rules hit car sales and outlays on clothing and home furnishings also declined. The French government and the central bank have said they’re expecting the economy to rebound quickly from the impact of strikes in December, partly aided by more tax cuts fueling domestic demand.

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