French Consumer Confidence Drops in Jan

FRANCE JAN CONSUMER CONF IND 92; DEC 95

• Consumer sentiment fell 3pt to 92 in Jan, after rebounding in Dec, coming in weaker than market expectations (BBG: 94)
• Jan's decline was driven by a sharp fall in household's view of the economic situation in the next 12 month, down 9pt, while consumer opinion about their own future financial situation dropped 5pt.
• Consumer's savings intentions rose sharply by 11pt after easing in the previous month, marking the highest level since Dec 2012 where the index also ticked up to 38.
• The fear of unemployment edged up 8pt in Jan to its highest level since November after easing in Dec.
• The intention to make major purchases deteriorated again at the beginning of the year, falling by 6pt.
• Jan's decline in confidence together with high savings intentions and muted willingness to make major purchases bodes ill for future spending and household consumption in Q1.