French Consumer Confidence Weakens

(RTTNews) - French consumer sentiment weakened in March largely due to the deterioration in households' view about future financial situation, monthly survey data from the statistical office INSEE showed on Wednesday.

The consumer confidence index fell unexpectedly to 92 in March from 93 in February. The reading was expected to rise to 94.

The survey showed that households' balance of opinion related to their future personal financial situation weakened the most in March, down by seven points to -11.

The one related to their past personal financial situation dropped one point to -21 and returned to its long-term average.

Further, the proportion of households believing it is a good time, in the current economic situation, to make major purchases picked up to -26 from -28.

The indicator measuring the current saving capacity dropped one point, while the expected saving capacity remained unchanged in March.

French consumers view on future standard of living deteriorated, with the index falling to -50 from -47. By contrast, the one related to past standard of living gained one point to -69.

Households' fears about unemployment alleviated significantly compared to the previous month. The corresponding index slid to 46 from 54. The proportion of households who consider that prices have risen sharply during the past twelve months has kept decreasing. The index slid to -7 from -5. Meanwhile, the future inflation index rose to -41 from -43.