France: falling real wages weigh on consumer spending

France, like its neighbours, made it through the winter without suffering energy shortages, thereby avoiding a recession. Supply difficulties for businesses continue to subside rapidly, which should help disinflation in the coming months. However, hiring difficulties persist, maintaining upward pressure on nominal wages. On the whole, households are the losers in the inflation shock (fall in real wages). This is reflected in their spending, especially in the goods segment. Furthe...