In May 2024, French household consumption recorded a clear recovery, ending the decline in April. The National Institute for Statistics and Economic Studies (Insee) explains this return to consumption and provides details of household spending on other products, such as industrial goods and energy.
In the latest figures for May just released, INSEE sees a clear recovery of 1.5% over the month in household consumption expenditure, following a fall of 0.9% in April 2024.
This increase was mainly driven by consumption of food products which recorded an increase of 2.4% in May 2024, after an estimated decline of 3.2% in April of the same year.
INSEE specifies that this increase is the result of increased consumption of canned fish, meat, fruit and vegetables or even pasta and bakery products.
However, you should know that over the course of one year, food consumption has decreased by 0.7%.
This jump in consumption recorded during the month of May can also be explained, adds INSEE, by the increase in energy consumption, which, for its part, recorded a recovery of 3.9% in the month of May 2024, driven by an increase in the consumption of electricity and gas.
On this topic, INSEE explains that this jump would be, among other things, due to temperatures close to seasonal norms recorded during the month of May 2024 after several consecutive months above seasonal norms.
You should also know that in one year the consumption of French households on electricity and gas increased by 3%.
Change in spending patterns in France
As for industrial goods, INSEE recorded a slight decline of 0.3% in May due to a decline in purchases of durable goods and spending on clothing and textiles.
Under the influence of the decline in the purchase of new cars, the consumption of durable goods fell by 0.6% in May, while the previous month recorded an increase of 0.7%.
INSEE also points out that purchases from used cars have, on the other hand, increased, while expenses for furnishing apartments remained almost stable (0.1% after 1.2% in April 2024).
On the other hand, spending on clothing and textiles fell (0.6% after 1.6% in April 2024). INSEE also notes that spending on cameras and perfumes saw an increase during the month of May 2024.
Finally, to make up for their decline purchasing power, French households are trying to adjust their finances to reality.
They are also increasingly using entry-level products developed by private label brands, favoring lower prices on the marketing side. Other consumers prefer to look for promotions.
