French consumer spending unexpectedly declined in September

According to the report from Insee, in September 2019, household consumption expenditure on goods decreased by 0.4% in volume. Economists had expected a 0.1% increase. This decrease was explained by the downturn in manufactured good spending (–1.3%). Food purchases bounced back (+0.5%) whereas energy consumption was virtually stable (–0.1%). Over the whole quarter, household expenditure on goods bounced back compared to the previous quarter (+0.4% after –0.1%).

In September, manufactured good consumption decreased (–1.3%) after rising for four consecutive months. Durable good purchases decreased (–2.2%) as well as textile-clothing spending (–1.2%). Other manufactured good consumption went up slightly (+0.2%). Over the quarter, manufactured good spending recovered (+1.6% after –0.4%).

In September, durable good expenditure fell sharply (–2.2% after +1.8%), due to a drop in car sales, in particular new ones. Housing equipment sales also decreased (–0.6%), in particular furniture purchases. Over the quarter, durable good purchases bounced back sharply (+2.8% after –0.8%).

Expenditure on textile-clothing decreased in September (–1.2% after +2.1%). In particular, footwear sales fell sharply, after a large increase in August. Over the quarter, textile and clothing consumption went down slightly (–0.1% after +0.4%).