France is going through a delicate period on several levels. The economic situation of the country is at the center of concerns in this political situation marked by the electoral campaign for the early legislative elections. This situation is not without impact on the morale of the French.
According to a study carried out by the National Institute of Statistics and Economic Studies (Insee) and made public this Wednesday, June 26, the French are not optimistic about the evolution of their finances in the future. In June, more people think that prices will accelerate over the next 12 months.
In detail, this study reveals that the French are prey to several uncertainties in the face of this political situation. According to INSEE, many people are pessimistic about the future standard of living in France. Thus, the index measuring the situation of the nation and the perception of the future stood at 89, down one point compared to May (90). This index remains “well below” its long-term average (100), said the National Institute of Statistics in its press release.
More French people think that prices will accelerate
Concerning the opinion of households regarding their past personal financial situation, it went from -24 in May to -25 in June, according to the same study. That of future personal financial situation went from -14 in May to -13 in June. The study also reveals that the proportion of households considering it appropriate to make major purchases fell slightly, from -33 in May to -32 in June.
Furthermore, with regard to savings, the current capacity of French households rebounded by 3 points, going from 15 in May to 18 in June. However, future savings capacity fell sharply, from 11 points in June to 7 points in May. Households also said they were more pessimistic regarding the future standard of living in France (-46 in May to -50 in June). The share of those who think prices will accelerate over the next 12 months has increased (-53 in May to -47 in June).
Note that, according to the INSEE definition, the French morale index is a “synthetic indicator of household confidence sums up their opinion on the economic situation: the higher its value, the lower the household judgment on the economic situation is favorable. The average is 100. An index above this average means that the French are rather optimistic about the economic situation in the country and vice versa.
