The consumer spending report out of France this morning came out below forecasts and highlighted a contraction of 1.5% in consumer spending for June. The monthly report was forecast to reveal 1.0% growth in this vital sector of the French economy, but the sudden contraction has sparked worries that Europeans may be avoiding consumption in an effort to save for the hard times ahead should Greece continue to experience problems.
The Greece austerity vote, which took place Wednesday and passed 155-138 in parliament, has wrinkled portfolio analyses given its sensitive nature. The impact on risk appetite is being felt across multiple sectors of the European economies, a French spending decline being one of the earliest signals.