Household consumption down sharply in October

This is the strongest decline in household consumption in France since April 2021, marked by confinement due to Covid-19. This consumption “falls back sharply in October”, recording a fall of 2.8% over one month, INSEE reported on Tuesday. This decrease is explained “by the sharp reduction in energy consumption” which fell by 7.9% due to “particularly mild weather conditions”, but also stems from a 1.7% drop in purchases of manufactured goods and food consumption, which fell by 1.4%, explains the National Institute of Statistics.

In September, household consumption increased by 1.3%, according to a figure revised upwards by 0.1 percentage point. The same goes for energy consumption, which was on the rise, as was that of manufactured goods, while that of foodstuffs, which are currently experiencing double-digit inflation, fell for the fifth consecutive month.

In October, the decline in consumption of durable goods “is linked to the decline in spending on capital goods, in particular telephones, and, to a lesser extent, a sharp drop in purchases of new vehicles”, according to INSEE. , which also reports a 4.1% decrease in clothing-textile spending, after a 5.1% increase in September.

Over one year, compared to October 2021, household consumption fell by 5.9%, while the rise in consumer prices amounted to 6.2% over the same period, reports the Institute again. . Still over one year, expenditure on energy and refined products (fuels) fell by 11.5% and that on food products by 7.5%, while consumption of manufactured goods fell by 1.9%.

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