France: Consumer confidence deteriorates in June
June 27, 2018
The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) decreased to 97 points in June, the lowest print in nearly two years (May: 99 points, previously reported: 100 points). The result undershot market expectations of 100 points. As a result, the indicator still lies below the 100-point benchmark, where it has been for two consecutive months.
A breakdown of the index shows consumers’ confidence in their personal situation declined in June, with their assessment of their current financial situation deteriorating, while their perspective of their future financial situation was unchanged. The future financial situation index continues to remain well below the long-term average. Moreover, consumers were more downbeat about their expected ability to save; however, households were more optimistic about their current savings capacity. On the macroeconomic front, households’ outlook on past and future living standards deteriorated in tandem in June. Furthermore, consumers’ fears of unemployment rose sharply in June. Inflation expectations, meanwhile, increased in June.
Author: Lindsey Ice, Economist