Household consumption (2020 base)

Paru le :Paru le22/07/2024

Analysis of changes in household consumption expenditure, associated with other factors (such as gross disposable income), shows household behaviour related to consumption/savings.

In addition, it provides a detailed analysis of consumption at three further levels:

  • consumed products: products are defined according to manufacturing process and material of which the consumed object is made, e.g. textile, wood, chemical, etc.;
  • function, or according to the needs that the consumption meets. For example: food, alcoholic beverages and tobacco, clothing and shoes, housing, heating, light, etc.;
  • the durable or non-durable nature of the goods consumed (durable goods as opposed to fungible goods). In this way the important durable goods can be distinguished (vehicles, furniture, household or leisure equipment) from semi-durable goods (textiles, clothing) and non-durable goods (food, energy).

In the past, about every ten years, and now every five years on average, statisticians carried out an in-depth revision of the methods and evaluations used in the national accounts: this revision leads to what is called "a new base" or “new benchmark”. Changes of base may also be accompanied by revisions of concepts or of classifications.

Data are currently published in 2020 base. Since 1986, there have been seven bases: base 1980, base 1995, bases 2000, 2005, 2010, 2014 and 2020.

The evaluation of household consumption with the 1995 base differs appreciably from that with the 1980 base (changes in concepts, changes to fields and re-evaluations of consumption levels, changes to the product classification).

In the 1995 base, the changes are:

  • inclusion of the overseas departments (DOM);
  • classification as "household expenditure" of duties and taxes in the 1980 base (e.g. household waste collection tax);
  • different treatment for offsetting tariff reductions;
  • removal from consumption of antiques and art objects;
  • re-evaluation of 1980 base levels from available sources, including adding new products.

Compared with the 1995 base, consumption in the 2000 base additionally covers:

  • inclusion in household expenditure of expenses related to financial intermediation services indirectly measured (FISIM); this expenditure corresponds to financial institutions' interest margins on consumer credit and on deposits;
  • re-evaluation of levels of the 1995 base from available sources, including adding new products, especially for goods and services associated with information and communication technology.

In the 2005 base, the consumption is now based on the French classification of activities - NAF rev. 2. The change in classification has been an opportunity to:

  • an overhaul of the account of non-profit institutions serving households and of the social action;
  • the integration of VAT on leasing in FISIM;
  • a re-evaluation of consumption levels based on available sources, including readjustments on satellites accounts.

In the 2010 base, consumption levels are measured using the concepts described in the new European system of Accounts (ESA 2010). Compared to the base 2005, it includes:

  • the integration of Mayotte as overseas department;
  • a new way to register tax credit that underestimates the consumption expenditure of households (either as grant or as social benefits in kind);
  • the classification as "consumption expenditure of households" of tax on registration certificates;
  • the new definition of consumption casualty insurance, based on the difference between collected premiums and expected benefits (and no longer based on actually paid benefits);the re-evaluation of the 2005 base levels from the available sources.

In the 2014 base, consumption levels are measured using the concepts described in ESA 2010. Compared to the base 2010, it includes:

  • the re-evaluation of the 2010 base levels in services which are adjusted to take into account new sources. These adjustments made it possible, in return, to increase the external balance and bring it closer to the estimates of the Balance of Payments;
  • spending by non-residents in France has been increased, in line with the latest estimates of the balance of payments;
  • the integration of the drug traffic in the accounts led to a very slight increase in the consumption of households consistent with the data published by expert bodies of the subject;
  • the audiovisual fee paid to France Télévision and Radio France is now classified as a mandatory levy which reduces the consumption expenditure of households.

In the 2020 base, consumption levels are still measured according to the concepts described in ESA 2010, but they further improve consistency between data sources. A re-estimation of all base levels has been undertaken in order to appraise all consumer product levels for the years 2019 and 2020. The levels have been updated by comparing the different data sources available: data from private panels, data from specialized professional organizations, structural data from companies or data from the Family Budget survey. In particular:

  • the results of the national Housing survey 2020 have been integrated for the estimation of expenditure in real rents and imputed rents;
  • the territorial correction has been recalibrated on balance of payments data;
  • household consumption levels for services have been re-examined and adjusted on the basis of company data.

In parallel with the analysis of the various sources available for estimating levels, specific methodological changes have been made in response to the latest European recommendations, notably concerning the method for estimating automobile expenditure, the treatment of tax credits, and the reclassification of public broadcasting expenditure as collective consumption by general government (outside the scope of actual household consumption).