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French consumer spending rises
PARIS, France -- French consumer spending jumped higher than expected in October, but economists warned the effect could be temporary because the rise was mainly in smaller purchases. National statistics office INSEE on Thursday reported a 1 percent rise in consumer spending, which is much stronger than the .03 percent gain economists were anticipating. The data precedes Friday's much-awaited third-quarter gross domestic product figures, of which consumer spending represents 55 percent. But the increase in spending was not in core durable goods, which was up just 0.1 percent, but rather in items such as clothing and books -- leaving many economists questioning the significance of the rise. "The overall global economic climate is weak, but because of the rigidities in the French economy, for example in the labour market, consumers are being shielded from much of that weakness still," Emmanuel Ferry, of the broker firm Exane, told Reuters. "However, it is just a question of time. The impact of the wider economy will catch up on consumer spending in the end," he said. The eurozone's second-largest economy is threatened by an unemployment rate of 9 percent that is expected to rise another 0.3 percent, as well as the risk of road blockades by French truckers in the run-up to Christmas due to pay disputes. Disgruntled farmers, demanding higher prices for the food they supply, blocked about 60 supply depots to the retail sectors on Thursday. The farmers also warned they could join any road blockades by truckers.
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