| Actual | Previous | Revised | |
|---|---|---|---|
| Month over Month | -1.0% | -0.1% | 0.1% |
| Year over Year | -1.4% | -0.3% | -0.6% |
Highlights
Consumer spending declined 1.0 percent in March, falling to its lowest level since November 2014, when excluding Covid, and were 1.5 percent below year-ago levels. The monthly decline marks the largest contraction since December 2022.
Manufactured goods purchases also fell 1.0 percent on the month while falling 1.4 percent from a year ago. Within the branch, durable goods fell 1.9 percent in March from a month ago and 3.3 percent year-on-year. Household durables goods purchases fell 1.0 percent on the month, indicating consumers are delaying major purchases in an uncertain environment.
Spending on energy fell 1.8 percent in March from the previous month, while food consumption fell 0.5 percent in March, extending a 0.8 percent February decline.
The data shows a frugal and cautious consumer which will continue to be a drag on the overall economy should the trend persist.
Manufactured goods purchases also fell 1.0 percent on the month while falling 1.4 percent from a year ago. Within the branch, durable goods fell 1.9 percent in March from a month ago and 3.3 percent year-on-year. Household durables goods purchases fell 1.0 percent on the month, indicating consumers are delaying major purchases in an uncertain environment.
Spending on energy fell 1.8 percent in March from the previous month, while food consumption fell 0.5 percent in March, extending a 0.8 percent February decline.
The data shows a frugal and cautious consumer which will continue to be a drag on the overall economy should the trend persist.
Definition
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.
Description
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.
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.
