Consumers reduce spending on textiles and energy in France in September

The French Bureau of Statistics announced on the 28th that consumer spending in France fell by 0.5% month-on-month in September, weaker than market expectations, due to consumer spending on textiles and energy.

The French National Bureau of Statistics Insee announced on October 28 that consumer spending in France fell unexpectedly in September, dropping 0.5% month-on-month and 1.3% year-on-year, as the number of jobless claims rose to over a decade and consumer stagnation on economic growth. Worries have intensified.

In August, consumer spending in France rose 0.2% month-over-month, and the annual increase was revised down from 0.3% to 0.1%.

Economists had expected that consumer spending in France in September was flat compared with a month earlier, down 0.7% year-on-year.

In September, consumer spending on textiles and leather fell by 4.7% on a month-to-month basis, and energy expenditures, including gasoline, fell by 6.2%, which was the main reason for the decline in consumer spending during the month. In contrast, car spending rose 2.8% month-on-month, and durable consumer goods spending rose 1.9%.

Some economists said that France’s dependence on domestic consumption is very serious. If consumption declines, growth will stagnate and the economy may fall into recession.

The slow growth and the increase in the number of unemployed have made the French President Nicolas Sarkozy’s 2012 election challenging. The two polls released last week showed that his socialist rival François Hollande’s support rate has taken a lead.