The French, worse off than their European neighbors? A study by the Boston Consulting Group (BCG) indicates that their spending fell sharply in the first quarter of 2024, except for one category. What can we learn from these trends?
French spending has fallen in the face of inflation
The BCG study shows that the French have much less means to make non-vital purchases. In the first half of 2024, the inhabitants of France have in fact reduced their spending in almost all areas:
Evolution of French spending over the first half of 2024
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Among the most affected sectors, we find ready-to-wear (-38%), snacking (-30%) as well as alcohol (-24%). Certain key sectors are also affected, such as non-prescription medicines and care, as well as household appliances.
The only sector where the French spent more is food, with a net increase of 5%. The study notes, however, that this increase is largely due to inflation, or at least to rising prices. Hence a conclusion from BCG:
“Faced with inflation, the French have refocused their spending on basic products. »
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Mixed outlook
Regarding the evolution of income and savings, the outlook is mixed. If the majority of French people (63%) expect their income to change little for the next half-year, however, they expect prices to continue to rise (61%).
However, we note that the majority of French people (51%) believe that their spending on basic products will decrease. But they don't expect it to increase their savingssince 52% believe that this will remain constant for the next semester.
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In the end, only 35% of French people currently believe they feel “good or very good » regarding their personal financial stability. Unsurprisingly, this fear is found in their opinion regarding the political atmosphere: 75% of them believe that it is “bad or very bad”at a time when the government is considering the question of the budget.
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Source: BCG
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Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency industry, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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