French Consumer Confidence At Two-Year Low

FRANCE NOV CONSUMER CONF IND 90; OCT 94

• Consumer sentiment dropped 4pt in Nov to 90, falling short of market expectations looking for drop to 92.
• The index declined to the lowest level since Dec 2018 amid the second wave of Covid-19.
• Household's assessment over the outlook in the next 12 months was bleak: their opinion regarding the general economic situation plunged by 9pt, while the assessment of their financial situation fell 5pt.
• The fear of unemployment remained elevated and rose further to 78 which is the highest level since Jun 2013.
• Household's savings intentions in the next 12 months ticked up 3pt and the indicator remains elevated since the start of the pandemic.
• The intention to make major purchases fell sharply in Nov, decreasing 8pt to a six-months low of -27.
• Consumers expect inflation to rise significantly in the next year, while they believe that prices eased in the last 12 months.
• Concerns about unemployment, higher savings intentions and no intentions to make major purchases all bodes ill with future spending and is likely to lead to a subdued level household consumption in Q4.