Source:Insee

30 JUNE 2011

HOUSEHOLD CONSUMPTION of manufactured products contracted further and moved down to -1.5% month-on-month to May pushed down by textile-clothing -4.4% drop and other manufactured goods -1.3% decline as inflationary pressures impacted consumers buying power and forced additional arbitrage. The summer sales, effective from next month and for five weeks, arched over tight financial conditions, and kept households away from stores.

The Paris Fair, a much awaited ten-day event during which the latest trends are unveiled to the public, revealed equal consumers' caution as average shopping expenses were reported by organizers to have dipped -7% compared with the previous year.  

Including energy, total consumption of manufactured products climbed to -0.8%. However, unusually warm weather in May, the hottest month in over 100 years according to the national weather forecaster, pushed up demand for electricity to +3.4% due to air conditioning as well as water. Use of oil products also rose into positive territory to equal level.

By contrast, consumption of food products fell -1.7% due to lesser meat products consumption.

Households nevertheless refrained from tightening their belt entirely: real bargain hunting allowed for new passenger car sales to leap to -1.8% from the previous month abyssal -10.3% due to auto dealers incentives, equally to the previous month. Sales of household equipment stayed sustained and rose to -0.4%

In one year, household consumption of manufactured products moved up to -1% while total consumption fell -1.8%. The consumption of energy decreased by -6.5% as home-heating ended with warmer weather and consequently impacted downward consumption of oil products -7.8% in addition to lesser demand due to higher petrol prices.

Manufactured products -1.5% drop was dragged down by the automobile group
-3.4% decline, mechanically pushed down by the previous months performance. Consumption of textile-clothing dipped -2.8% while other manufactured products stayed on the rise and grew +0.7% mostly thanks to IT products and associated home products.