Source:Insee

2 AUGUST 2011

HOUSEHOLD CONSUMPTION of manufactured products surged +1.1% month-on-month in June as car sales rebounded +2.2% while demand for household equipment increased +3.8%.

The Summer sales period, initiated from the last week of the month, boosted the consumption of  textile clothing, a +4.3% surge, as rebates of 50% and bargains allowed for some money savings at a time of tight financial conditions. Although sales of textile-clothing this month surpassed pre-crisis levels by twofold, they remained below last July, a +16.4% increase, as the new sales period, one week ahead of schedule compared with previous years, started prior to the payment of monthly salaries.

The consumption of other manufactured goods grew a more modest +0.7% as households focused on essentials but overall manufactured products thus turned positive and climbed +2.3%.

Lesser demand of energy products led consumption to move down to +1.4% as cooler weather pushed down demand following May record high temperatures while inversely, the consumption of food products climbed to -0.4%. Demand for oil products soft landed to +1%

In one year, and at a time of economic uncertainties brought about by the Euro area's renewed debt concern, total household consumption of manufactured products rose +1.8%.

The consumption of manufactured products climbed +2.2% as manufactured goods rose +4% thanks to sustained demand for household equipment, a +6.7% rise to € 5 196 billion or +144% leap compared with ten years ago and +44% in five years. Car sales rose +0.9% while sales of textile clothing edged up +0.2% and other manufactured goods a more vibrant +1.2%. The consumption of food products stayed nearly unchanged or +0.2% since food price inflation dented households buying power. Demand for energy mechanically dipped -0.7% due to oil products -2.7%.