Soccer-mad Europe shows more economic upturn signs-by by Brian Love
PARIS (Reuters) - Rising French consumer morale was the latest sign of European recovery on Friday, but lower German retail sales left an inkling of doubt about anecdotal evidence of a confidence revival in the World Cup hosts' economy. That will do little to diminish a widespread conviction that the European Central Bank will increase euro zone interest rates soon in the belief that the economy is running at full throttle and is at risk of resurgent inflation. France's statistics office said its consumer sentiment index improved in a survey in June, the month that the world soccer championship, in which both the French and German fight quarter-final contests this weekend, kicked off. The dampener was news of an unexpected slide in retail sales in Germany in May, down 2.2 percent in a month where they might have been expected to soar as people spent more than usual on flat-screen televisions to watch the sporting bonanza.
"Overall it shows that we do not yet have a lasting consumer pickup," said Joerg Lueschow, economic analyst at West LB bank.
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