Archive for May 31st, 2011

Household consumption of goods decreased by 1.8% in April

Auto Date Tuesday, May 31st, 2011

The French household consumption of goods, a new indicator, fell 1.8% in April after -1.0% in March, the share of manufactures falling by -1.6% after -1.1%, show Statistics released Tuesday by the INSEE.

The decline in consumer goods – which includes products manufactured food and energy – due to a sharp decline in purchases of durable goods, particularly cars and lower energy costs, says Insee.

In one year, consumption of household goods fell by 0.1% in April, the consumption of manufactured goods increased by 1.2%.

"All the ingredients were there for a further drop in consumption, but the shock is still tough," said Alexander Law, an economist at analyst firm Xerfi.

"What is striking is that almost all segments are displayed on the decline, he adds. Economic growth in the first quarter was very flattering and the second quarter was well launched on wrong basis.A sharp correction is to wait. "

Spending on durable goods fell 6.3% in April after -1.2% in March, this decline can be explained largely by the sharp drop in car sales (-10.2% after -2 1% in March) related to the end of the scrapping.

Purchases of equipment housing fell 1.5% after -0.6% in March and those of textile and leather 0.5% after -4.2% in March.

Energy consumption decreased by -3.2% in April after -0.7% in March, spending on petroleum products (gas, fuel and oil) fell 3.4% after -1.2% in March.

According to Insee, the decline in consumption of energy products due to the rather mild weather conditions that limited the use of heating fuels.

Consumer food she has gained 0.8% after -0.7% in March.