France: Consumer confidence dips in January

The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) inched down from 105 points in December to 104 points in January. The print slightly undershot market expectations of an increase to 106 points. Despite the drop, the indicator is resting above its long-term average of 100 points, where it has been since January 2017. The indicator crossed the 100-point threshold in January 2017 for the first time since September 2007.

January’s print reflected consumers’ mixed views on their personal finances and macroeconomic outlook. While views of their future financial situations deteriorated slightly, their willingness to save improved notably. Unemployment fears recorded a pronounced drop in January, and views on the country’s standard of living were broadly unchanged. Lastly, inflation is expected to increase substantially; this subcomponent recorded its highest reading since January 2014.

FocusEconomics Consensus Forecast panelists expect private consumption to increase 1.6% in 2018, which is up 0.1 percentage points from last month’s forecast. The panel expects private consumption to grow 1.5% in 2019.