July 30, 2014

In July, the consumer sentiment index published by the National Statistical Institute (INSEE) remained at the 86 points recorded in June. The print was in line with market expectations.



The stability of the index reflected the stand-by situation in which the economy is stuck, despite the government’s attempts to revitalize it and to foster competitiveness and confidence. In July, consumers were more optimistic regarding their personal financial situation and they didn’t alter their opinions concerning their savings capacity. Indeed, consumers were more pessimistic about the general economic situation in France, which also reflected the increased fears of worsening conditions in the labor market.

FocusEconomics Consensus Forecast panelists expect private consumption to increase 0.2% this year, which is down 0.1 percentage points over last month’s forecast. The panel expects private consumption to accelerate moderately to a 1.0% rise in 2015.