December 2024 marked a notable surge in household consumption, driven primarily by increased spending on engineered goods and energy. A 0.7 percent rise in overall expenditures reflected consumer confidence, with a 1.9 percent jump in engineered goods purchases, particularly in durable goods like new cars and motorcycles, spurred by upcoming regulatory changes. This suggests that policy shifts can strongly influence consumer behaviour, prompting early purchases before new standards take effect.

Meanwhile, textile-clothing rebounded (1.8 percent), indicating renewed consumer interest in fashion, potentially influenced by seasonal shopping or promotions. However, the sharp 2.5 percent increase in energy consumption was more weather-driven, as December temperatures aligned with seasonal norms, boosting electricity and fuel use.

In contrast, food consumption declined (minus 1.5 percent), particularly in agri-food products, despite a slight rise in unprocessed food purchases. This divergence may point to shifting dietary habits or economic constraints. Looking at the fourth quarter of 2024, steady growth in engineered goods (0.9 percent) and food consumption (0.5 percent) suggests a resilient spending pattern. Yet, the 0.9 percent drop in energy consumption over the quarter signals fluctuating demand, likely tied to seasonal and economic factors.

Ultimately, these trends highlight the dynamic interplay between regulation, climate, and consumer preferences in shaping household expenditures, taking the RPI to 0 and the RPI-P to 0. This means that economic activities are generally in line with market expectations in France.

Consumption of manufactured goods by consumers is an indicator of consumer spending for household durable goods such as autos and furniture. The data are released separately as part of the report on total goods spending.

This indicator is a measure of retail sales and is unique to France. It measures consumer spending for household durable goods such as autos and furniture. The data are seasonally and workday adjusted. These adjustments eliminate the fluctuations that are solely due to changes in the number of working days. The data appear to be particularly sensitive to the number of worked Saturdays. With consumer spending a large part of the economy, market players continually monitor spending patterns. Retail sales are a measure of consumer well-being.

The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.

Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps auto sales are especially strong or apparel sales are showing exceptional weakness. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.