Source:Insee

26 JANUARY 2012

Consumer Confidence stayed almost unchanged in January, up one point to 81, following the Winter recess when the gauge had engaged a stabilization process from the Euro area November crisis when moral had plunged by four points upon the single currency region potential fragmentation over its lingering debt crisis.

Concerning their personal financial situation over the past 12 months, households pushed up the index one point to -29, as the lack of drastic occurrence was perceived positively. Family reunions during the winter break probably perked up assurance on top of the five weeks Winter sales period, a breather for most households faced with a stagnating buying power. On this account, and as regards their finances over the next 12 months, households left the index stable, up one point to -28. Regarding their current savings capacity,
and thanks to unusual bargains, 50% price cuts from the first week of the sales period unlike previous years, households raised the index two points to 19, above the long-term average 12 points.

Less optimistic over their savings capacity over the next 12 months, households nevertheless stayed cold-headed as the index fell one point to -14 due to known government mix of tax increases and spending cuts. Therefore, the opportunity to save rose one point to 19, as an obligation rather than a choice by anticipation on a rainy day.  Consequently, the opportunity to make significant purchases index rescinded three points to -29, a new low, since lending, already scarce because of the credit crunch, is unlikely to become households priority due to the country's triple A downgrade, and the ricochet effect on the financial sector's consumer loans interest rates.

Regarding their standing of living over the past 12 months, household lifted the index two points to -72, since in the year past, although turbulent due to the Euro area crisis, the nation was spared from chaos. Over the next 12 months, households raised their hopes by pushing the index four points to -57, with the presidential elections in May in mind, based on their political aspirations.

Concerns over unemployment therefore deflated by three points to 66 and revealed households prudent approach about the weak labor market as a series of lay-off plans in each the financial and industrial sectors, effective from this year, made the headlines successively.

On price trends over the past 12 months, households left the index unchanged
at 12, linear since November and despite ever increasing petrol prices, while over the next 12 months, households expect consumer prices to decline another two points to -14, and despite utilities prices constant upward trend.