French Consumer Confidence Rebounds Unexpectedly

France’s consumer confidence improved unexpectedly in October, after weakening slightly in the previous month as households were slightly less pessimistic regarding an improvement in the cost of living in the next months, survey results from the statistical office Insee showed on Wednesday.

The consumer confidence index rose to 82.0 in October from 79 in the previous month. The score was forecast to fall to 77.0.

However, the index was well below its long-term average of 100.

The index measuring households’ financial situation in the next twelve months improved to -23 in October from -28 in September. Similarly, the measure for their view on own past financial situation improved slightly, with the index rising to -29 from -32.

Consumers’ views regarding the future saving capacity remained stable in October, as the respective index stood at -5. Nonetheless, the index for the current saving capacity rose to 13 from 10.

The index measuring households’ fears about the trend in unemployment in the next 12 months was unchanged at 23 in October.

Households’ pessimism regarding their ability to major purchases in the next 12 months lessened somewhat in October, as the corresponding index rose slightly to -37 from -38 in September.

Consumers did not regard the next 12 months as favorable for saving, with the relevant index falling notably from 31 to 26 in October.

The share of survey respondents who believe that prices will accelerate over the coming year remained virtually stable. The relevant index lost a point to 0 in October from 1 in September.

Recent official data showed that France’s consumer price inflation eased to to 5.6 percent in September from 5.9 percent in August.

The Bank of France expects inflation to come in at 5.8 percent on average this year and in a range between 4.2 percent and 6.9 percent in 2023.

Over the next twelve months, a significant number of households believe the standard of living will improve in France. The corresponding index strengthened sharply to -64 from -71.

Meanwhile, the index measuring the standard of living in the past twelve months held steady at -79 in October.

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