France consumer confidence wavers

A recovery in French consumer confidence fizzled in July, data showed on Wednesday, with households intending to save rather than spend.

With consumer spending a key driver of the French economy, the two-point drop from June in the index compiled by the national statistics office INSEE does not augur well for a quick recovery from the coronavirus-induced recession.

At 94 points in July, the index remains below the long-term average of 100, but is much higher than in the global financial and eurozone debt crises, when it fell to around 80 points.

The number of households saying it is a good time to save rose for a third month in a row and is now above the long-term average.

Expectations for consumers’ own personal financial outlook and living standards for the coming year did not change from June.

Intentions for making major purchases also dipped slightly and are just below the long-term average.

Fears about being thrown out of work abated only marginally over the month, remaining at a level much higher than the norm and near levels reached during the global financial and eurozone debt crises.