France Consumer Confidence

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France: Consumer confidence drops sharply in September

September 23, 2011

The consumer sentiment index published by the National Statistical Institute (INSEE) dropped from 85 points in July to 80 points in September (no figures for August) which marked the lowest level since March 2009. The reading was worse than market expectations, which only had the index edging down to 83 points. With this month's decline, consumer confidence moved further below its long-term average of 100 points, which does not bode well for private consumption in the coming months. Households were more pessimistic about their future personal financial situation as well as the future general economic situation. Consequently, consumers are less willing to make major purchases. In addition, employment expectations deteriorated sharply compared to July.


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