French household confidence deteriorated further in December, with the indicator which summarizes it losing one point to 89 compared to the previous month, INSEE announced on Wednesday.
This further deterioration in household confidence is explained in particular by fears of a deterioration in the standard of living, an increase in unemployment or more sustained inflation, notes the National Institute of Statistics.
The indicator for November 2024 has not been revised, standing at 90.
The opinion of households regarding their own financial situation is marked by stability, notes INSEE, as is the proportion who consider it appropriate to make major purchases. But households’ opinion on their future financial situation loses one point, moving slightly away from its long-term average, calculated for the years 1987 to 2023.
Household fears about increasing unemployment are up sharply, +10 points to 53, after having already gained 9 points in November, reaching their highest level since May 2021.
November was marked by the announcement of site closures at Michelin and ArcelorMittal, and the declarations of the Minister of Industry Marc Ferracci, predicting that there would ‘probably’ be other site closures in the coming weeks and the coming months, with a social balance sheet counting ‘in thousands of jobs’.
Household opinion on the standard of living is also falling and has lost four points, below its long-term average.
French households also fear further price increases. The share of households who predict that prices will accelerate over the next twelve months gains five points, getting closer to its long-term average.
The confidence of French households in their saving capacity, both current and future, strengthened in December, with both balances gaining one point. And if the share of households considering that it is ‘opportunistic to save is decreasing’, it remains well above its long-term average, according to INSEE.
/ATS
