French household morale saw a further decline in November, according to INSEE. Rising fears related to unemployment and the financial outlook are tarnishing the outlook for the end-of-year holidays, with consequences for consumption and savings.
Growing concern about unemployment
INSEE revealed that the household confidence indicator lost three points in November, reaching a new critical threshold. This deterioration is mainly explained by a sharp increase in fears regarding unemployment. The corresponding index climbed nine points, reaching a balance of opinion of 42, its highest level since May 2021.
This trend is part of an economic context marked by worrying announcements. Michelin and ArcelorMittal recently formalized site closures, suggesting major social consequences. For his part, Marc Ferracci, Minister of Industry, warned that other closures could follow, with job losses amounting to “ in thousands “. Sophie Binet, general secretary of the CGT, even warned of the existence of 250 social plans in preparation, threatening up to 200,000 jobs in the country.
The French are not only concerned about the job market. Their personal financial situation is also a growing source of stress. According to INSEE, the financial outlook for households is expected to deteriorate in the coming months, leading to a drop in consumption. In particular, major purchases risk being postponed, which could worsen the economic downturn.
Savings as a refuge
Another warning signal: a resurgence of inflationary fears. After a relative lull, households anticipate a further acceleration in prices in the next twelve months. These concerns contribute to a pessimistic long-term outlook, with a perceived declining standard of living.
In this context, saving is once again becoming a priority for many households. Opinion on the opportunity to save increased by one point to reach 38, well above the average of 18 previously observed. However, this dynamic hides a more nuanced reality: many have already drawn on their resources and the ability to save seems weakly supported, according to INSEE data.
As the end-of-year holidays approach, the economic and social outlook is darkening the morale of French households. Between rising uncertainties about unemployment, the erosion of purchasing power and increasing recourse to savings, the national economy could be further weakened by sluggish consumption in the months to come.
