French public debt lower, household confidence higher: INSEE

27th December 2012, Comments 0 comments

France's public debt has declined slightly since late June and household confidence has risen for the first time since May, data released on Thursday by the national statistics institute INSEE showed.

The public debt fell by 14.5 billion euros ($19.2 billion) from the reading in June, or by 1.1 percentage point, to 1.8 trillion euros or 89.9 percent of gross domestic product (GDP), still far above the EU limit of 60 percent, the official figures showed.

An INSEE statement put the improvement down for the most part to a decrease in debt by national government administrations, which along with Social Security spending and local administrations comprises the public accounts.

Spending on social security programmes edged lower by a much more modest 1.1 billion euros, while local spending increased by 400 million.

The government had forecast public debt equal to 89.9 percent of GDP at the end of the year, but also expects it to increase next year to 91.3 percent before declining again in 2014 and 2015.

Meanwhile, household confidence gained an indexed two points from the level in November to 86 points, a separate INSEE statement said.

The increase points towards a possible pick up in consumption, though the December figure remained below the indicator's long-term average.


© 2012 AFP

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