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French consumers express more pessimism in May

Staff writer |
French consumers showed more pessimism about their financial situation in May, with the monthly sentiment indicator declining to 93 points, one point down from April, the national statistics bureau Insee said.

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The households' sentiment to their past personal financial situation over the period lost two points while their appreciation for the future situation was unchanged at minus 13. Their opinion of the current savings capacity fell sharply by 11 points, the lowest index since March 2012.

Consumers' attitude toward past and future general economy improved to minus 58 and minus 34, up by one point and two points respectively from April, but the two indicators remain far below their long-term average, Insee showed in a report.

At the end of May, households are less numerous to think it is suitable time to make major purchases with the index losing 3 points after it had risen by 16 points since September 2014.

Worries about a lasting depressed labor market eased over the period as less consumers expected an increase in unemployment. The monthly indicator stood at 58 points, down 2 points from a month earlier.

The French government targets 1 percent growth this year against 0.4 percent recorded in 2014, pledging to stem rising unemployment via thousands of sponsored jobs and a reform pact, a tough economic test to the Socialists during the year.

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