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France Consumer Confidence February 2018

France: Consumer confidence declines in February

The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) dropped from 104 points in January to 100 points in February, undershooting market expectations of a softer drop to 103 points. The indicator is currently resting at its long-term average of 100 points. Since January 2017, it has remained at or above the 100-point threshold, where it had not been since September 2007.

February’s drop reflects notable deteriorations in most components of the index. Consumers’ personal financial situations deteriorated significantly in February, and savings intentions declined as well. A worse outlook on personal situations was in part attributed to a more pessimistic view of the country’s macroeconomic situation. Future standards of living were perceived more negatively in February, whereas inflation expectations rose sharply, reaching the highest level since August 2014.

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