France’s consumer confidence indicator fell to 92 in March 2025, down from 93 in February, and below market expectations of 94.
French consumer morale weakens
The reading also remained well below its long-term average of 100, signaling a continued sense of caution among French consumers. The decline was primarily driven by growing pessimism about personal financial situations and future living standards. Consumers became more negative about their financial outlook, with the indicator dropping to -11 from -4 in February. Similarly, expectations for the future standard of living worsened, falling to -50 from -47, indicating increasing concerns about economic conditions and the potential for stagnation in household incomes.
Households anticipating rising prices increase
At the same time, the proportion of households anticipating rising prices over the next 12 months increased, though slightly less than in February (-41 vs. -43). This suggests that inflationary pressures are still top of mind for many consumers, even as prices have eased in some areas. In line with these concerns, the share of consumers believing it is a good time to save declined to 40 from 42, reflecting a more cautious approach to personal finances amid ongoing uncertainty. Despite these challenges, consumers’ outlook on their future ability to save remained unchanged at 15, suggesting a degree of stability in long-term savings expectations for some households.
Unemployment concerns ease
On a more positive note, concerns over unemployment prospects eased slightly, with the indicator improving to 46 from 54. This suggests that consumers may be feeling a bit more confident about the labor market, despite broader economic concerns. Additionally, households became slightly less negative about making major purchases, with the indicator moving to -26 from -28, hinting at a modest recovery in consumer spending intentions, potentially driven by favorable conditions in certain sectors, such as durable goods or housing.
Overall, while there are some positive developments, the persistent pessimism about finances and the broader economic outlook suggests that consumers are bracing for more challenges ahead. Given the high level of uncertainty surrounding inflation, interest rates, and the global economic environment, French households appear to be adopting a more cautious and conservative approach to their spending and saving decisions in the near term.
