France Household Consumption Rises Unexpectedly

Household consumption in France rose by 0.6% month-on-month in June 2025, accelerating from a downwardly revised 0.1% gain in the previous month and defying market expectations of 0.1% decline. The latest figure also marked the third consecutive month of increasing household expenditures, as spending on manufactured goods (0.5% vs -0.4% in May) rebounded, mainly driven by durable goods. Moreover, energy consumption increased notably (3.5% vs 2.1%), primarily due to higher electricity expenditures. Meanwhile, food consumption declined further (-0.9% vs -0.3% in May), weighed down by a continued fall in agri-food product expenditures. On an annual basis, household spending grew by 0.9% in June 2025.