Household consumption and purchasing power slowed down in 2017

In 2017, households' purchasing power increased less sharply than in 2016 (+1.3% versus +1.8%): the acceleration in their gross disposable income in current euros (+2.6%) did not offset the marked rebound in prices (+1.3% versus -0.1% in 2016). The lesser gains in purchasing power resulted in a slowdown in their consumer spending: 1.0% in volume, as compared to +2.1% in 2016. Their savings rate increased slightly (+0.3 point versus -0.2 point in 2016) to reach 14.3%.

Transport costs are the main contributor to the increase in consumer activity, driven in particular by car leasing and the dynamic air transport industry. Accommodation and food expenses, like culture and recreational expenses, continued to gain speed in 2016. Consumer activity related to communication is picking up in volume terms, due to lower prices. Spending on housing, in contrast, is slowing down. Spending on food remains stable while that on alcoholic beverages while tobacco is seeing a downturn, as is the use of financial services. It should also be noted that purchases by non-residents are very dynamic.