PARIS, July 23: Household consumption dropped 0.4 per cent in June after a surprise, revised gain of 1.7 per cent in May, official figures showed on Wednesday.

Compared with a year earlier, household purchases of manufactured goods -- which account for about one quarter of all personal consumption in France -- were up 1.0 per cent, the INSEE national statistics office said.

For the three months to June, consumption was flat compared with the first quarter of the year.

Analysts said the figures showed a marked slowdown from May, reflecting the impact of rising prices for food and energy.

“Since the first quarter, there has been a clear slowdown in household consumption due to the pickup in inflation driven by rising oil and food prices,” said Mathieu Plane of the OFCE think tank.

This “has drastically reduced household purchasing power,” noted Marc Touati, economist with Global Equities.—AFP