World Economy

French Consumer Confidence Weakens in October

French Consumer Confidence Weakens in OctoberFrench Consumer Confidence Weakens in October

French consumer confidence weakened unexpectedly in October, survey data from the statistical office Insee showed Friday. The consumer sentiment index fell to 100 in October from 101 in September.

This was the fourth consecutive decline and a similar lower score was last posted in April. The score was forecast to remain unchanged at 100 in October, RTTNews reported.

Households were less optimistic about their future financial situation. The corresponding balance slid 3 points to -15.

Meanwhile, their opinion on past financial situation rose slightly with the index gaining 1 point to -21, after a 4-point drop in September. Households’ view on their expected saving capacity declined substantially. The index declined to -9 from -4.

Assessment of the past standard of living in France improved slightly, while their view on future standard of living dropped further. The indicator measuring past living standard came in at -39 versus -41 in September and that for future standard of living dropped 1 point to -23.

Households’ fears concerning unemployment were left almost unchanged in October. The corresponding balance receded by 1 point to 15. Households have been more numerous than in September to expect prices to increase during the next twelve months, Insee said.

Households became more pessimistic about their future financial situation as they anticipated a squeeze from higher inflation, cutting back their views on how much they were likely to be able to save.

Unemployment worries remained higher than over the summer, possibly reflecting concerns over the likely impact of President Macron’s labor market reforms on employee protections, despite evidence of rising employment from business survey data. It still remains well below its long term average, though.

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