In October household consumption fell again (except for food)

Household consumption was 0.4% lower in October than in September, INSEE indicated on Friday.

A decrease that is mainly explained by the sharp decrease in purchases of manufactured goods (-1.3%), such as spending on clothing (-5.1%), but also by the fall in energy consumption (- 1.2%).

However, household food consumption recovered significantly (+1.2% after -1.4% in September). It was driven by increased purchases of agri-food products, while consumption of unprocessed agricultural products fell again.

Consumption of durable goods began to decline slightly again (-0.6% after +0.8% in September). A decline linked mainly to reduced spending on capital goods, particularly computers and telephones, as well as a reduction in purchases of used vehicles.

A confirmed “JO” effect on growth

In October 2024, household energy spending decreases again (-1.2% after -0.3% in September) due to a drop in spending on electricity and gas.

Household consumption had already slowed down in September compared to August, going from +0.4% in August to +0.1% in September.

However, year-on-year, household goods consumption increased by 0.4% in October. But food spending was down 0.6% in October 2024 compared to October 2023.

INSEE also confirmed in its detailed results that French growth was 0.4% in the third quarter, while the increase in household purchasing power accelerated.

The GDP for the third quarter was “stimulated by the Olympic and Paralympic Games”, recalls the National Institute of Statistics, after a growth of 0.2% in the first two quarters compared to the previous quarters.

The contribution of domestic demand, excluding stocks (consumption, investments, etc.), was positive in the third quarter, contributing 0.3 points to the increase in GDP, foreign trade contributed negatively with 0.1 points and the variation of stocks with 0.1 points.