In May 2024, French household consumption recorded a sharp rebound, breaking with the decline in April. The National Institute of Statistics and Economic Studies (Insee) explains this return to consumption and provides details on household spending on other products, such as manufactured goods and energy.
In the latest figures for May which it has just published, INSEE notes a clear rebound of 1.5% over one month in household consumption expenditure, after a decline of 0.9% in April 2024. This increase is mainly driven by the 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 due to the increase observed in the consumption of canned fish, meat, fruit and vegetables or even pasta and bakery products. However, you should know that over one year, food consumption is down 0.7%.
This rebound in consumption recorded during the month of May can also be explained, adds INSEE, by the increase in energy consumption in volume which, for its part, recorded a rebound of 3.9% in the month. from May 2024, driven by an increase in electricity and gas consumption. On this subject, INSEE explains that this rebound 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 over one year, French household spending on electricity and gas increased by 3%.
Change in French consumption patterns
Concerning manufactured goods, INSEE noted a slight decrease of 0.3% in May due to the decline in purchases of durable goods and spending on clothing and textiles. Due to the decrease in purchases of new cars in particular, spending on durable goods actually fell by 0.6% in May, while it had increased by 0.7% the previous month.
INSEE also notes that purchases of used cars have, on the other hand, increased, while expenditure on housing equipment remained almost stable (0.1% after 1.2% in the month of April 2024). For their part, spending on clothing and textiles fell (0.6% after 1.6% in April 2024). INSEE also notes that spending on cameras and perfumes recorded increases during the month of May 2024.
Finally, to compensate for the decline in their purchasing power, French households are trying to adapt their financial means to reality. Also, they are increasingly using entry-level products developed by private label brands, favoring lower prices on the marketing side. Other consumers prefer to look for promotions.
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