French consumer confidence rises unexpectedly in Jan, hits highest since 2007

French consumer confidence rose unexpectedly in January, data from National statistics agency Insee showed on Friday. French monthly consumer confidence index rose one point to 100 in January from 99 in the previous month.

France, consumer confidence reached its long-term average for the first time in ten years in January. French consumers were more confident in their financial situation in January and their view of living standards improved, Insee said.

In January, consumers were particularly optimistic on the future of unemployment and on their purchase intentions. Fears of unemployment declined to the lowest level since June 2008. However, their current capacity to save remains limited.

France building sector has been recovering for several months on the back of low interest rates and higher confidence. Rebound in purchase intentions could be positive for private consumption in 17Q1, Insee said.