French household confidence slumps in March

French household confidence slumped in March as pessimism over the economic situation in the year to come reached a record low, data released on Tuesday by the national statistics institute showed.

The Insee institute’s overall household confidence indicator fell two points from the level in February to an indexed 84 points, where it last stood in November, and well below its long-term average of 100 points.

A sub index of consumers’ outlook for the general economic situation in the next 12 months lost five points and “thus stands at its historic minimum” of minus 61 points, far below the long-term average of minus 23 points, an Insee statement said.

Consumers were also more gloomy regarding their personal financial situation in the past year and in the year to come, with both sub indices losing two points to levels well below the long-term average.

As a result, “households were more numerous in March to forecast an increase in unemployment”, Insee found, with the corresponding figure gaining three points to reach its highest level since July 2009, when France was in a deep economic slump.