Household consumption in France rebounded slightly in November, rising 0.5% after a sharp drop of 2.7% in October, INSEE reported on Friday. In October, household consumption fell by 2.7%, a figure revised upwards by 0.1 percentage point (-2.8% previously announced), marked in particular by the sharp drop in energy consumption .
In November, energy spending also rebounded moderately (+0.6%) “in a context of temperatures significantly above normal”, according to the statistical institute, like those in clothing-textiles (+0.9%) . The increase in consumption of manufactured goods (+1.1%) compared to the previous month, especially durable goods (+1.8%) such as transport equipment, computers or glasses, offset the new decline in food consumption (-0.2%), which fell for the sixth consecutive month, detailed the National Institute of Statistics and Economic Studies.
Over one year, consumption fell by 5.2%
Like energy prices, which soared with the war in Ukraine, food prices are currently experiencing double-digit inflation, jumping 12.1% year on year in December, according to data releases. Wednesday by INSEE.
Over one year, compared to November 2021, household consumption fell by 5.2%. Still over one year, spending on energy and refined products (fuels) fell by 11.4% and food products by 7%, while consumption of manufactured goods fell back more slowly, by 1%.
A fear of households for the future
It should be noted that household morale in France remains depressed despite a slight easing of inflation, INSEE reported on Wednesday, in a context where individuals and professionals will be hit in early 2023 by increases in energy prices and where consumption is likely to suffer, according to economists. “Households feel this crisis as an extremely serious crisis and it can be felt in their way of consuming”, notes Mathieu Plane, deputy director of the analysis and forecasting department of the French Observatory of Economic Conditions (OFCE).
In December, the index which summarizes the opinion of households on their economic situation and that of the country fell by one point to 82 and remains well below its long-term average, which is 100, according to the National Institute of Statistics. “On the outlook for the standard of living in France, we are almost at a historic low since the 1970s”, underlines Mathieu Plane. In particular, the propensity to save remains well above its long-term average, a sign of household fears for the future.