Household consumption expenditure fell sharply in October


By Le Figaro with AFP

Published ,
Update

Food purchases notably fell by 1.5%. ibilyk13 / stock.adobe.com

Between September and October, French household consumption decreased by 0.9%, according to figures revealed by INSEE this Thursday.

Faced with inflation, households continue to tighten their belts. This Thursday, INSEE published a worrying estimate of consumer spending on goods last month: this fell by 0.9% in October over one month, after a period of stability in September. Furthermore, the change in spending on goods for September is revised downward by 0.2 points to 0.0% by the National Institute of Statistics.

Over one year, consumer spending on goods fell by 1.3%, and by 0.5% over the quarter, and that on manufactured goods by 1.8% and 0.4% respectively. Household consumption expenditure represents more than half of gross domestic product (GDP). Food consumption fell by 1.5% after +1.2% in September, and energy consumption is down sharply (-2.5% after -1.3%). Food purchases are notably down sharply for drinks, agricultural products, rice and flour, as well as processed fish. Tobacco consumption fell (-1.7% after +1.4%).

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Purchase of new cars on the rise

The drop in energy consumption is mainly explained by the decline in electricity and gas consumption, probably linked to the mild weather conditions in October, estimates INSEE. The consumption of manufactured goods is experiencing “a slight bounce» (+0.4%, after -0.4% in September), and that of durable goods rebounded more clearly (+0.5% after -0.4% in September).

Purchases of new cars are notably increasing. Spending on clothing and textiles increased by 0.5% in October. But purchases of shoes and leather are falling. Finally, purchases in the category “other manufactured goods» are almost stable (+0.1% after -0.2%).

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