After an improvement in August, household morale fell once more in September to settle at 79 points, according to the indicator published Wednesday by INSEE.
Consumer confidence fell by three points compared to August (82) and returned to its July level, well below its long-term average of 100. Before July, the indicator had no longer reached such depths since June 2013. The threshold of 79 points is even the historic low for household morale, measured by INSEE since 1972. months and the protection of purchasing power ensured by the government’s budgetary measures, comments Sébastien Boch for the Astères cabinet. French households are particularly pessimistic regarding the evolution of their personal financial situation, the corresponding balance deteriorating by six points compared to August.
The fear of rising unemployment
But the National Institute of Statistics also notes a “clear increase” in their fears concerning the evolution of unemployment (+11 points compared to the previous month). In a context where employment is doing relatively well in France (unemployment rate of 7.4% in the second quarter according to INSEE), fears linked to unemployment remain “at a low level” compared to their average of long period. The anguish of inflation remains very present since “the share of households believing that prices will accelerate over the next twelve months is rebounding” and “the corresponding balance gains ten points”, details INSEE.
In August, the one-year inflation rate reached 5.9%, and INSEE is due to publish a first estimate for the month of September on Friday. The share of households that consider it appropriate to save has risen by seven points compared to August. However, consumers are worried regarding their ability to save money in the future, with the balance relating to savings capacity falling by three points.
