French consumer spending recovered slightly in October

According to the report from INSEE, in October 2019, household consumption expenditure on goods increased slightly by +0.2% in volume*, after –0.3 % in September. Energy consumption decreased (–1.5% after +0.2%) but manufactured good spending bounced back (+0.3% after –1.2%) and food product purchases accelerated (+0.8% after +0.6%).

In October, food consumption accelerated (+0.8% after +0.6%). In particular, the consumption of fresh fruits and vegetables was dynamic for the second consecutive month. The consumption of processed products also increased. Energy consumption decreased (–1.5% after +0.2%), particularly because of the decrease in gas and electricity consumption. Refined product consumption was also decreasing, especially gasoline and heating oil.

In October, manufactured good consumption straightened out slightly (+0.3% after –1.2%). In particular, durable good purchases bounced back (+1.0% after –2.2%). On the contrary, textile-clothing spending went down again (–0.5% after –0.8%) and other manufactured good comsumption decreased (–0.2% after +0.3%).

In October, durable good expenditure bounced back, driven by transport equipment consumption (+1.8% after –3.6%), especilally demonstration and second-hand cars. Expenditure on textile-clothing decreased slightly in October for the third consecutive month (–0.5% after –0.8%), despite an increase in textile consumption.