FX.co ★ French Consumer Confidence Unexpectedly Weakens

Consumer confidence in France unexpectedly fell in February, according to a monthly survey conducted by the statistical office INSEE. The consumer sentiment index dropped from 91 in the previous month to 89, defying forecasted predictions of it rising to 92.

There was a noticeable decline in the outlook of consumers towards their financial situations; the index fell by three points to -11. However, the past financial situation index remained stable at -28.

In February, the faith of households in the aptness of this time to make major purchases took a hit; the corresponding index fell by five points to -40.

The assessments of households about their current and later ability to save also worsened during this period. The capacity to save in present times saw a decline to 11 from 15, whereas the future expected saving capacity decreased to 4 from 7.

Despite a three-point increase in January, the index lost three points as the proportion of households who thought this was a good time to save dwindled in February.

The survey indicated a bleak view of the future general economic scenario among households. The corresponding index slid from -38 to -42. The facet of the past financial situation also saw a slight drop, with an index of -77 as compared to -76 in the previous month.

Concerns about unemployment among consumers heightened, resulting in the corresponding balance gaining four points. The proportion of households expecting a price hike in the upcoming twelve months bounced back to -47 from an earlier -54. Remarkably, the measure for past consumer prices saw an uptrend, rising to 54 from 53.