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France Consumer Confidence May 2018

France: Consumer confidence remains stable in May

The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) was steady at 100 points in May, unchanged from April’s revised print (previously reported: 101 points) and falling shy of market expectations of a 101-point reading. Since January 2017, the indicator has remained at or above the 100-point benchmark, where it had not previously been since September 2007.

A breakdown of the components of the index showed consumers’ confidence in their personal situation was broadly unchanged, with consumers’ perception of their current and future financial situation similar to their view in April. However, consumers were more upbeat about their current ability to save and their ability to save in the future, with the expected savings capacity index now above its long-term average. The macroeconomic components of the index had mixed results. Households’ outlook on past and future living standards deteriorated in May, while their view of the labor market improved, with fears of unemployment subsiding. Inflation expectations, meanwhile, rose in May.

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