French households splashed out on clothes and equipment in January to generate a surprise surge in spending.
Consumer spending rose 1.2 per cent in January, national statistics office INSEE said today, after an increase of the same amount the previous month.
The January figure rose 7.1 per cent year-on-year, the largest annual rise since February 2000. The monthly number easily beat economists' consensus forecast of a flat reading.
Purchases of durable goods rose 1.5 per cent. A 4.2 per cent surge in spending on household equipment outweighed the impact of a 1.4 per cent drop in car sales.
Spending on textiles and leather goods jumped 2.9 per cent after rising just 0.9 per cent in December.
The report is the latest in a series of encouraging data on the French economy this week.
Reports have shown that business morale improved unexpectedly in February, helped by foreign orders, while inflation is under control and growth in the final quarter of last year was better than expected.