Paris, France – In May 2023, the confidence of French households in the economic situation has remained stable, according to the monthly consumer confidence survey. The indicator, which summarizes household confidence, stands at 83, unchanged from the previous month. However, it remains significantly below the long-term average of 100, calculated between January 1987 and December 2022.
Despite the stability in overall household confidence, the survey reveals mixed opinions on various aspects of the economy and personal finances. Here are the key findings:
- Personal Situation:
- Future Financial Situation: The balance of opinion regarding households’ future financial situation has increased by two points compared to the previous month. However, the balance for past financial situations has decreased by one point. Both balances remain below their long-term averages.
- Saving Capacity: The balance of opinion regarding current saving capacity has decreased by two points, while the balance for future saving capacity has also declined. Despite this, more households still consider it a good idea to save.
- Economic Context in France:
- Future Standard of Living: The balance of opinion regarding the future standard of living in France has improved for the second consecutive month, indicating a more positive outlook. However, the balance for past standard of living has reached its lowest level ever recorded since 1970.
- Unemployment: There has been a slight increase in households’ fears about unemployment, with the associated balance rising by one point. Nevertheless, it remains below the long-term average.
- Inflation Outlook:
- Price Changes: The balance of opinion regarding past price changes has dropped by four points but remains relatively high compared to the long-term average.
- Inflation Prospects: Fewer households believe that prices will accelerate or increase at the same rate over the next 12 months. Consequently, the balance of opinion associated with the inflation outlook has experienced a sharp decline, falling below its long-term average.
While household confidence remains stable overall, these findings suggest a cautious approach to personal finances and lingering concerns about the economy. The French government and policymakers will closely monitor these indicators as they continue to navigate economic recovery and strive to enhance consumer sentiment.
The next consumer confidence survey is scheduled for release on June 28, 2023, providing further insights into the evolving economic landscape in France.