Report
France: Purchasing power and the growing list of “essential consumption”
The majority of French people feel that their purchasing power has declined over the last five to 10 years, which does not tally with the facts observed. The role of “essential spending” - housing, energy, food - is often highlighted to explain this divergence between perceptions and reality of purchasing power growth in France. But even adjusting for the change in the weight of essential spending, purchasing power has still increased . The explanation for this paradox may then be that the list of essential spending , or consumer staples , has grown over time. It probably now includes telecoms, media, certain leisure activities (video games), computers, etc. What will happen tomorrow with purchases in the metaverse? It is also clear that the sharp rise in energy, food and real estate prices in the recent period will exacerbate this feeling of declining purchasing power, as essential spending is actually increasing rapidly.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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