French household spending falls short of expectations

Household consumption in France in 2024/6 fell 0.5% from the previous month, and was revised downward from the 0.8% increase in May, overturning the 0.2% increase in market expectations.

This decrease is due to a decrease in energy consumption (1.9% decrease; May: 2.6% decrease) due to a sharp decline in fuel purchases.

Additionally, food consumption also declined (down 0.7%, down 1.8%).

Conversely, purchases of industrial products recovered (0.4% increase, 0.9% decrease) due to increased purchases of durable consumer goods and clothing and textile products.

Looking at the three months up to June, household goods consumption is stable compared to the first quarter.

Source: France INSEE