French consumer confidence falls to 94 amid financial pessimism

France's consumer confidence index fell to 94 in October 2024, aligning with market expectations and slightly decreasing from 95 in September.

French consumer confidence falls to 94 amid financial pessimism

This latest reading remains significantly below the long-term average of 100, indicating persistent consumer pessimism regarding their financial outlook, which registered at -7 compared to -6 the previous month. Similarly, confidence in their standard of living declined more sharply, dropping to -41 from -38. Moreover, critical indicators of financial behavior show concerning trends: intentions to save have decreased to 37 from 40, signaling a shift in consumer priorities amid economic uncertainty. Future saving capacity also fell to 13, down from 15, reflecting fears that rising costs may hinder households' ability to save in the coming months. Concerns regarding future employment have escalated, with this metric increasing to 31 from 26, suggesting heightened anxiety about job security amid a challenging economic landscape. In tandem, inflation expectations have risen slightly, with the index moving to -49 from -53, indicating that consumers are increasingly bracing for increasing prices.

French households maintain steady views on major purchases despite low confidence

On a more stable note, households’ views on making significant purchases have remained unchanged at -29, suggesting that while confidence is low, there may still be some resistance to curtailing substantial expenditures. The data reflects a cautious outlook among French consumers as they navigate ongoing economic challenges, impacting their spending and saving behaviors.