France’s consumer confidence indicator edged up to 93 in February 2025 from 92 in January, aligning with market expectations and marking the highest reading in four months.
French consumer morale improves
Although sentiment remains below the long-term average of 100, the improvement suggests consumers are gradually becoming more optimistic about their economic prospects.
The latest survey showed that households grew less pessimistic about their financial outlook (-4 vs. -9 in January), reflecting a slight easing of concerns over personal economic conditions. At the same time, inflation expectations moderated, with fewer households anticipating price acceleration over the next 12 months (-44 vs. -43), suggesting that recent declines in energy and food prices may be providing some relief.
Households outlook on saving ability improved
Additionally, households’ outlook on their future ability to save improved (15 vs. 13), and the proportion of those believing it is a good time to save increased to 43 from 39, indicating a cautious but slightly more secure financial stance. However, this trend may also suggest a preference for precautionary savings rather than increased spending, which could weigh on domestic demand in the short term.
Meanwhile, expectations regarding the country’s future standard of living remained unchanged at -47, indicating continued concerns over economic stability. At the same time, worries about unemployment rose significantly (55 vs. 48), highlighting persistent labor market uncertainties, possibly linked to restructuring in key industries and global economic headwinds.
Consumers remained hesitant about making major purchases
Despite the overall improvement in sentiment, consumers remained somewhat hesitant about making major purchases, as the index measuring large spending intentions declined slightly (-29 vs. -28). This suggests that while financial outlooks have brightened slightly, concerns over job security and broader economic conditions are still influencing spending behavior.
Looking ahead, consumer sentiment will likely be shaped by inflation trends, labor market developments, and government policies aimed at supporting households and economic growth. Policymakers and businesses will closely watch these indicators for signals on potential shifts in consumer behavior that could impact France’s economic trajectory in 2025.
