FX.co ★ France Household Spending Falls Most Since 2022

Household consumption in France experienced a 1% decrease month-over-month in March 2025, following a revised downturn of 0.2% in February. This decline fell below market expectations of a 0.2% rise, marking the most significant drop since December 2022. The decrease was predominantly driven by a reduction in spending on manufactured goods, which saw a decline of 1.0% compared to a 0.1% increase in February. This downturn was largely attributed to decreased purchases of durable goods, which fell by 1.9%, and, to a lesser extent, textile and clothing items, which declined by 0.3%. Additionally, there was a reduction in expenditures on energy, which fell by 1.8% after a previous increase of 0.3%, and food consumption, which decreased by 0.5% compared to a 0.8% drop. Year-over-year, household spending fell by 1.5%, representing the largest annual decline since June 2024, following a 0.2% increase in February. For the first quarter of 2025, household consumption of goods decreased by 0.6%, reversing a prior increase of 0.1% in the preceding period.