France August Consumer Confidence Holds at 86, Below Long-Term Average
Key Takeaways
- •France's headline consumer confidence indicator held steady at 86 in August, remaining well below its long-term average of 100.
- •The indicator for households viewing it as a good time to save rose two points to a record high, while willingness to make major purchases fell two points below its long-term average.
- •Fears about future unemployment increased by three points and remain above the historical norm, reflecting growing labor-market anxiety.
- •Expected inflation over the next twelve months jumped nineteen points, fully reversing July's decline, and perceptions of past inflation rose eight points.
- •Assessments of both past and future living standards in France declined and remain well below their long-term averages.
Prior was 86
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French consumer confidence remained unchanged in August, with the headline indicator holding at 86. That leaves confidence well below its long-term average of 100, and the latest reading suggests households are still navigating a mix of caution on spending, weak labor-market confidence, and renewed inflation concerns.
Households continued to focus more on saving than spending, reflecting ongoing concerns about the economic outlook and employment prospects. The indicator measuring whether households consider it a good time to save rose by two points, after a three-point increase in July, to a new record high.
French households are still building precautionary savings, even as there are signs of stability in their personal finances. At the same time, they became slightly less willing to spend. The proportion of consumers who believe it is a good time to make major purchases fell, and the corresponding indicator dropped by two points to remain below its long-term average.
This gap between saving and spending intentions underscores the cautious attitude that continues to dominate among French consumers. Their assessment of personal financial conditions changed little.
The balance tracking households' views of their past financial situation edged down by one point, while expectations for future finances improved by one point. Both measures remain below their historical averages, suggesting households are not yet convinced that their financial situation is improving meaningfully.
French households also remained pessimistic about the country's broader economic prospects. The indicator measuring expectations for future living standards in France fell by two points, while views on past living standards declined by one point. Both readings remain well below their long-term averages.
Concerns about unemployment increased as well. The balance measuring fears about future unemployment rose by three points and remains above its historical norm, pointing to growing anxiety about labour market conditions.
Inflation worries returned in August after easing in the previous month. The share of households expecting prices to accelerate over the next 12 months surged, with the relevant indicator jumping 19 points. That move fully reversed July's decline and pushed inflation expectations well away from their long-term average.
Consumers also reported stronger perceptions of recent inflation. The balance measuring views on price increases over the past year rose by eight points and remained well above its historical norm.
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