Source:Insee

25 OCTOBER 2011

Consumer Confidence climbed two points to 82 compared with September, a modest and prudent increase however lifted by households regained assurance following the Socialist Party primaries televised debates which energized a record number of viewers regardless of their political opinion in view of the 2012 presidential elections to take place next May. 

Despite this month chaotic ambiance due to the lagging Greek debt crisis, the European Union's official decision to recapitalize banks, and related issues, consumer confidence about future job prospects jumped 12 points to 58 as the presidential contenders debates focused on the revival of the labor market. Households hopes were thus lifted since unemployment figures have been worsening successively over the past three months up to August.
 
On price trends over the next 12 months, households pushed down the index two points to -21 over similar hopes as price controls were also part of some of the candidates program. Over the past 12 months, households perception about inflationary pressures moved down, a three-point drop to 13, as petrol prices had rescinded slightly unlike food price inflation.

Regarding their personal financial situation over the past 12 months, households expressed some improvement by pushing up the index two points to -27, a ten point spread however compared with a long term average -17 points.
Over the next 12 months, consumer confidence stayed prudent as the index improved solely by two points to -23, still an abyssal gauge compared with the long term average -2.

On their current savings capacity, households kept in mind the current economic context (government austerity measures announced in August) by increasing the index three points to 19. Over the next 12 months, the index was sent down four points to -9, in line with the long term average. The opportunity to save money index rose two points to 18 while the opportunity to make significant purchases climbed three points to -22 due to the « TV debates feel good » factor and ahead of the Christmas season.

On their standard of living over the past 12 months, households maintained the index at a historical low -75 points, one single point down from the previous month. Over the next 12 months, confidence increased four points to -55, heralding an upward trend to come due to the current presidential elections context.