French household spending on consumer goods rose 0.9% in June over one month, driven up by a sharp rebound in food purchases after eight consecutive months of decline, INSEE said on Friday. The indicator is up for the second month in a row, after having already increased by 0.6% between April and May, an estimate revised up by 0.1 point by the National Institute of Statistics and Economic Studies.
The beginning of the year had been much less favorable to consumption, with three consecutive declines in the indicator in February, March and April. The increase in household consumption expenditure in June is mainly due to a 2.5% increase over one month in purchases of food products.
Within this expenditure item, purchases of agri-food products are rebounding “after eight consecutive months of decline” and tobacco consumption is also “slightly increasing”, details INSEE. But between the first and second quarters of 2023, French spending on food products nevertheless fell by 2.7%. And food consumption in June 2023 is 7.5% lower than in June 2022.
More broadly, “over the whole of the second quarter of 2023, household consumption of goods fell by 0.7% compared to that of the first quarter of 2023”, details INSEE.
In June, expenditure in the field of energy remained almost stable compared to May (0.1%), the fall in electricity and gas purchases being offset by an increase in fuel consumption and of fuel oil.
Consumption of manufactured goods is also almost identical to that of May (-0.1% over one month).
