Household consumption in France rebounded in May, with an increase of 10.4% compared to the previous month marked by the third confinement, reported Wednesday Insee. “This rebound is mainly driven by purchases of manufactured goods (+ 26%), with the reopening of all stores on May 19, and to a lesser extent by energy expenditure (+ 2.6%) after the end of travel restrictions in early May, ”explains the National Institute for Statistics and Economic Studies.
In April, household consumption had plummeted by 8.7% (revised figure), due to the implementation of the third lockdown. Spending on goods thus almost returned to their average level in the fourth quarter of 2019 in May, before the onset of the health crisis, specifies INSEE. In retail, the reopening of shops has particularly benefited clothing / textile purchases which jumped 149.2%, after falling 57% in April.
Purchases of durable goods increased by 11.3%, driven in particular by capital goods for housing (+ 24%). Finally, consumption of foodstuffs remained stable, after a slight drop in April. The household consumption indicator is closely monitored, consumption traditionally being the main engine of French growth. This is all the more true since the onset of the health crisis, with households having saved a lot due to health restrictions last year. Unlocking these savings will be a key element in the French economic recovery.