French households spend more but no growth in November

Despite prevailing economic gloom, consumer spending in France rose in November, according to statistics released on Tuesday. But the increase in GDP as th French economy struggles to recover. 

All lit up - the Champs-Elysées in Paris. Reuters/Charles Platiau

Household expenditure in France jumped 1.4 per cent last month, compared to October's 0.1 per cent decline, France's national statistics institute, Insee, reported on Tuesday.

The increase is being attributed to higher spending on gas and electricity which rose by 7.5 per cent.

For the entire third quarter, household spending rose by 0.1 per cent, despite the fact that spending power continued to decline, by 0.1 per cent, compared to 0.5 per cent the previous month.

But the French economy shrank by 0.1 percent in the third quarter of 2013.

However, Insee expects it to grow 0.4 per cent for the fourth quarter.

For the whole of 2013 the French economy is expected to post growth of 0.2 per cent.

While these figures indicate the challenges faced by France, its neighbour Germany has posted solid growth.

Most of Germany’s success is due to exports, an area where France continues to struggle.

November's jobless figures will be released on Thursday.

Unemployment fell to 3.27 million in October, having hit a historic peak of 3.29 million earlier in the year.