France: Consumer confidence drops to all-time low
June 27, 2013
In June, the consumer sentiment index published by the National Statistical Institute (INSEE) inched down to 78 points from the 79 points registered in May. The print marks the lowest level on record and also defied market expectations that had the indicator rebounding to 81 points. As a result, consumer confidence continues to move further below its long-term average of 100 points.
The June result reflected consumers' more pessimistic assessment of employment prospects, which reached levels not seen in four years. In addition, consumers' opinion regarding the overall economic outlook in the next 12 months deteriorated compared to May. Furthermore, households' purchasing intentions also deteriorated.
FocusEconomics Consensus Forecast panellists expect private consumption to remain flat this year, which is unchanged from last month's forecast, before accelerating moderately to 0.5% in 2014.