• French consumer spending unexpectedly declined in September

Market news

30 October 2019

French consumer spending unexpectedly declined in September

According to the report from Insee, in September 2019, household consumption expenditure on goods decreased by 0.4% in volume. Economists had expected a 0.1% increase. This decrease was explained by the downturn in manufactured good spending (–1.3%). Food purchases bounced back (+0.5%) whereas energy consumption was virtually stable (–0.1%). Over the whole quarter, household expenditure on goods bounced back compared to the previous quarter (+0.4% after –0.1%).

In September, manufactured good consumption decreased (–1.3%) after rising for four consecutive months. Durable good purchases decreased (–2.2%) as well as textile-clothing spending (–1.2%). Other manufactured good consumption went up slightly (+0.2%). Over the quarter, manufactured good spending recovered (+1.6% after –0.4%).

In September, durable good expenditure fell sharply (–2.2% after +1.8%), due to a drop in car sales, in particular new ones. Housing equipment sales also decreased (–0.6%), in particular furniture purchases. Over the quarter, durable good purchases bounced back sharply (+2.8% after –0.8%).

Expenditure on textile-clothing decreased in September (–1.2% after +2.1%). In particular, footwear sales fell sharply, after a large increase in August. Over the quarter, textile and clothing consumption went down slightly (–0.1% after +0.4%).

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