Household consumption in France rose slightly in June, by 0.3%, after a strong surge in May linked to deconfinement, INSEE reported on Friday.
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"
The increase in purchases of manufactured goods (+ 2.7%) is offset by the drop in food consumption (-1.6%)
" in particular, while restaurants have reopened, explains the National Institute of Statistics and economic studies, as well as the decline in energy expenditure (-1.6%).
"
The consumption of goods is thus in June at its average level of the fourth quarter of 2019
", notes INSEE.
This slight increase follows a strong rebound of 10.6% (revised figure) in May, a month marked by deconfinement.
Household consumption in the spring experienced ups and downs, since with the implementation of the third confinement the indicator had plummeted by 8.7% in April.
The “unblocking” of savings for economic recovery
In the second quarter, household consumption of goods showed a marked drop (-2.5% after + 0.8% in the first quarter) because of health measures. In June, consumption was driven by spending on textile clothing (+ 5.5%) and other manufactured goods (+ 3.2%). But over the quarter, at the end of June, "
consumption of manufactured goods fell again (-4.7% after + 0.3% in the first quarter)
", observes INSEE.
The increase in the consumption of durable goods (+ 1.4%) was driven by watch and jewelry items (+ 15.2%) which had only partially benefited from the deconfinement initially.
On the other hand, purchases of capital goods for housing have dried up a bit (-1.6% after + 23.7%), “
but remain well above their pre-crisis level
”.
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The household consumption indicator is closely monitored, consumption traditionally being the main engine of French growth. This is all the more true since the start 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.
