French household consumption rebounds in October on rise in food consumption and manufactured goods

French household consumption expenditure on goods rebounded in October. The French National Institute of Statistics and Economic Studies (INSEE) showed that the household expenditure roe 0.8 percent in terms of volume, following a sharp fall of 2 percent in the prior month. This rebound was mainly due to the rise in food consumption and manufactured goods.

Food consumption rose sharply in the month by 0.9 percent, following two straight months of decline. This rise was mainly driven by increase in the consumption of agricultural products and from the dynamism of meat and meat products consumption.

Meanwhile, spending on manufactured goods rose 0.8 percent, following a sharp fall of 3.2 percent last month. Sales of durable manufactured goods were dynamic. Consumption of durable goods rose 1 percent in October after falling 5.1 percent in September. This rise was driven by an increase in sales of new cars, after the clear drop in September, an after-effect of the solid rise in August. Spending on housing capital goods also recovered.

Consumption of “other manufactured goods” rose slightly in October, following two months of virtual stability. Energy consumption was up 0.7 percent in October. This moderate result masks a wide disparity between the dynamism of refined product consumption and fall in gas and electricity consumption.

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