- Prior was 86
- Full report here
French consumer confidence remained unchanged in August, with the headline indicator holding at 86. Confidence remains significantly below its long-term average of 100.
Households look more focused on saving rather than spending, reflecting persistent concerns about the economic outlook and employment prospects. In fact, there was further improvement in the savings climate. The indicator measuring whether households consider it a good time to save increased by two points, following a three-point rise in July, reaching a new record high.
French households continue to build precautionary savings despite signs of stability in their personal finances. In contrast to the strong savings trend, households became slightly more reluctant to spend. The proportion of consumers believing it is a good time to make major purchases declined, with the corresponding indicator falling by two points and remaining below its long-term average.
This divergence between saving and spending intentions highlights the cautious mindset that continues to dominate among French consumers. Consumers’ assessment of their personal financial situation showed little change.
The balance measuring households’ views of their past financial situation edged down by one point, while expectations for future finances improved by one point. Both indicators, however, remain below their historical averages, suggesting that households are not yet convinced that their financial conditions are improving meaningfully.
French households remain pessimistic about the country’s broader economic prospects. The indicator measuring expectations for future living standards in France declined by two points, while views on past living standards dropped by one point. Both measures remain well below their long-term averages.
At the same time, fears surrounding unemployment increased. The balance measuring concerns about future unemployment rose by three points and remains above its historical norm, indicating growing anxiety about labour market conditions. Inflation concerns returned in August after easing in the previous month.
The proportion of households expecting prices to accelerate over the next twelve months surged, with the corresponding indicator jumping 19 points. The increase completely reversed July’s decline and pushed inflation expectations significantly away from their long-term average.
Consumers also reported stronger perceptions of recent inflation. The balance measuring views on price increases over the past year rose by eight points, remaining well above its historical norm.
This article was written by Giuseppe Dellamotta at investinglive.com.