French consumer sentiment likely to have edged up in September

The French consumer sentiment is expected to have risen slightly in September. According to a Societe Generale research note, the consumer confidence index might have increased further to 98 from previous month’s 97. Other surveys for the month have also provided encouraging signs. In particular, the sound flash PMI release last week indicated a rebound in service sector employment. The consumer sentiment is expected to remain strong in the months ahead, underpinned by the improvement in the job market, noted Societe Generale.

Meanwhile, consumption in France is expected to show signs of recovery. Consumption started the third quarter badly with a sequential decline of 0.2 percent in July. This was on the back of three previous monthly declines. But there is possibility of a partial rebound in August, with encouraging signs from surveys. Consumption is expected to have grown 0.9 percent sequentially in August, said Societe Generale.

Energy consumer is likely to have rebounded further in August after recovering in July. It had been a major drag on the headline figure. Moreover, non-energy consumption is also projected to have rebounded, with a likely rebound in durables. However, the quarter-on-quarter growth in consumption is expected to remain flat in the third quarter, stated Societe Generale.