(CercleFinance.com) – French household consumption of goods increased by 0.7% in November, mainly driven by energy spending and clothing, according to data published Friday by INSEE.
After four consecutive months of decline, household energy expenditure rebounded by 1.4%, due to the increase in electricity and gas consumption.
Spending on clothing and textiles also accelerated, recording an increase of 1.8% after an increase of 0.8% the previous month.
The monthly decline of 0.9% in household consumption of goods for the month of October has not been revised.
The November increase rather bodes well for growth in activity in the fourth quarter, given that household consumption represents around half of French GDP.
Based on the results of the latest Banque de France survey, fourth quarter growth would be a little higher than its initial estimate of 0.1% to approach +0.2%, after a drop of 0 .1% in the third quarter.
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