French consumer confidence improves to three-month high

France’s consumer confidence indicator rose to 92 in January 2025, up from 89 in December, surpassing market expectations of 90. This represents a three-month high and indicates a notable improvement, bringing the indicator closer to its long-term average of 100.

French consumer confidence improves to three-month high

The rise in consumer confidence reflects a shift in household sentiment, with households becoming less pessimistic about their financial situation and future prospects. Expectations regarding their personal finances improved, with the outlook for financial situation narrowing to -10 from -14, suggesting a more positive view of the economic environment. Similarly, households’ expectations regarding their standard of living also improved, narrowing to -47 from -58. This suggests that the fear of declining living standards has diminished, as consumers grow more optimistic about the broader economic outlook. Furthermore, concerns about future unemployment eased, with the indicator falling to 47 from 54. This drop in unemployment concerns points to a sense of stability in the labor market, which may have contributed to the overall improvement in consumer sentiment.

Saving capacity outlook improves

In addition, households reported more favorable views on their future saving capacity, with the indicator rising to 21 from 18. This suggests that consumers are expecting to have more financial flexibility in the coming months. Likewise, the proportion of households expressing an intention to save increased, with the saving intentions indicator improving to 38 from 34, indicating a greater sense of financial security.

Further details

One of the most notable shifts in sentiment was a decrease in the proportion of households expecting prices to rise in the next 12 months. The indicator fell significantly to -43 from -33, suggesting that consumers are less concerned about inflationary pressures than they were previously. This decline in inflation concerns could signal growing confidence in the stability of prices and a reduction in the overall economic uncertainty that has affected consumer behavior in recent months. Overall, the January 2025 consumer confidence data paints a picture of improving sentiment in France, with households becoming more optimistic about their financial situation, the economy, and inflation trends.