French consumer confidence deteriorates sharply in April

The French consumer confidence in economic situation deteriorated sharply in April given the COVID-19 situation. The sentiment index dropped 8 points to 95, below its long time average of 100. The share of households considering it is a suitable time to make major purchases fell significantly. The corresponding index dropped 43 points to its lowest level of -59. Furthermore, households’ opinion balance on their future financial situation fell strongly, losing 15 points to the level of May 2014.

The share of consumers considering it is a suitable time to save fell, with the index dropping 5 points to 4. Consumers’ opinion balance on their current saving capacity rebounded. It rose 4 points to 20. On the other hand, households’ opinion balance related to their expected saving capacity dropped slightly by 2 points to 0.

Consumers’ opinion balance regarding the future standard of living in France fell sharply by 35 points in the month to -71. This is the strongest fall ever recorded in a month. Thus, households’ opinion fell regarding the standard of living in France seems to be more pronounced than on their own.

Meanwhile, the share of consumers considering that the past standard of living in France has rebounded in the past 12 months has risen considerably for the fourth straight month to -31.

Households fear a strong rise in unemployment. The corresponding balance rose 42 points to 58, a level not seen since July 2015. Consumers considering that prices would be on the rise in the coming 12 months were clearly more numerous than the previous month. The index rose 27 points to 14.