France: Consumer confidence nosedives to lowest level in almost five years
May 28, 2013
In May, the consumer sentiment index published by the National Statistical Institute (INSEE) plummeted to 79 points from 83 points registered in April. In addition, the print came in well below market expectations that had the indicator rising to 85 points. As a result, consumer confidence now sits at levels not seen since July 2008, well below its long-term average of 100 points.
The May result reflected consumers' worse assessment of their past financial situation, as well as households' deteriorating prospects for their future financial situation. In addition, consumers' opinion regarding their expectations for the overall economy in the next 12 months deteriorated slightly compared to April. Furthermore, a higher number of households expect an increase in unemployment.
FocusEconomics Consensus Forecast panellists expect private consumption to remain flat this year, which is unchanged from last month's forecast, before accelerating moderately to 0.6% in 2014.