French Consumer Confidence Weakest Since Early 2023

(RTTNews) - French consumer confidence fell to the lowest in more than three years in May, survey data from the statistical office INSEE showed Wednesday.

The consumer sentiment index dropped more-than-expected to 82 in May from 84 in the previous month. This was the lowest since March 2023. The reading was forecast to drop to 83.

The survey showed that the proportion of households believing it is a good time, in the current economic situation, to make major purchases declined sharply again. The corresponding index lost five points to hit -40.

Assessment about consumers' personal financial situation, both past and future also deteriorated. The balance related to their past personal situation dropped three points to -29, and the one regarding their future financial situation edged down one point to -20.

At the same time, assessment about their ability to save, both current and future, remained stable in May. Further, the proportion of households believing it is a good idea to save rose one point to 40.

Consumers' view about past standard of living in France deteriorated again sharply with the corresponding balance falling six points to -81. The one related to future standard of living lost one point to -70, reaching its lowest level since July 2022. Households' fears about unemployment eased slightly. The corresponding balance declined two points to 54.

Finally, the survey revealed that the proportion of households who consider that prices will accelerate over the next twelve months dropped back. The associated balance lost eight points and reached 2.

The proportion of households who considered that prices increased over the last twelve months climbed again. The index gained two points, after gaining 31 points in April.