Fruits, Vegetables, Meat, Clothing… French Households Consume less than their European Neighbors

HOUSEHOLD BUDGET: Faced with the political instability that has reigned for many months, the French have reduced their consumption, preferring to spend in dribs and drabs

The morale of French is not in good shape and this is reflected in the consumption figures. Faced with political uncertainty, households are spending less and this is hampering this essential engine of the economy, already shaken by the pandemic and the inflationary shock. Food, household appliances, cars, mobile telephony… Faced with successive governments since mid-2024, households are curbing their spending. However, these account for around half of the wealth produced annually in France.

“The consumption disappointed for several quarters, growing less quickly than purchasing power, notes Dorian Roucher, head of the economic department of the National Institute of Statistics (Insee), interviewed by AFP. Goods are more affected than services, he notes, citing food where the cumulative decline is “of the order of 8% since 2022”, when prices soared after the Russian invasion of’Ukraine. “This is unheard of since we started producing statistics at INSEE”.

Fewer fresh produce and more prepared meals

The French consume less fresh fruit, vegetables and meat, considered more expensive, and more eggs, pasta or prepared meals. Textile purchases are also suffering, or automobiles are suffering due to technological wait-and-see attitude. If this phenomenon has been observed since the health crisis – stores and restaurants were closed – then the inflationary crisis, the dissolution of the’National Assembly in June 2024 caused another concussion.

“The French are brooding. Relative to their neighbors, they are much more pessimistic”, underlines Dorian Roucher. A perception that is however disconnected from reality (rising wages, resistance of the labor market, etc.): “It’s psychological”, notes Maxime Darmet, economist at Allianz Trade.

Consumption down, savings up

In its September economic report, Insee noted that “household confidence, which was trending recovery until the summer of 2024, has been declining almost continuously since then”. Their gains in purchasing power were greater than elsewhere in Europe “, due to lower inflation, expected at 1% on annual average in 2025, “but their purchases are less dynamic and the savings rate breaks a new record on the rise every quarter. “

While heated budgetary debates agitate the Assembly, the horizon remains foggy. This climate of uncertainty may have been accentuated by international trade and geopolitical tensions. Household consumption should slow to +0.5% this year, after +1.0% in 2024 (compared to +0.8% and +2.5% for purchasing power), according to the statistical institute. As a result, the savings rate – the unconsumed share of income – would increase further, unlike other European countries. It would reach 18.5% over the year (after 18.2%), a record in 45 years excluding the health crisis, whereas it had remained stable around 15% previously.