Source:Insee

25 NOVEMBER 2011

Consumer Confidence dropped three points to 79 compared with October dented by successive industrial stakeholders announcements of upcoming lay-off plans which consequently spiked the households concern over unemployment index ten points to 70, four points away from the record high 74 attained in September 2009.

This November, and by mi-month, news of Peugeot PSA, BNP Paribas, LAFARGE, and SOC Gen 2012 restructuring plans froze households short lived regained optimism since news of the labor market fifth consecutive deterioration, up to September, had preceded a second austerity plan. More negative signals arched over households concerns as next year growth downwards revision made the headline and Moody's warning over France's potential triple A downgrade brought under the limelight the consequences of such scenario, making the specter of neighboring Spain, Italy and Portugal, closer to home. 
 
As a result, households savings capacity over the next 12 months index fell three points to -13, back to August levels when the first government austerity plan was announced.  Households current savings capacity followed a similar downward spiral and decreased two points equally to last August as well. The opportunity to save index dipped three points to 15, by anticipation on possible lower income. 

Regarding their personal financial situation over the next 12 months, and in such context, pessimism reigned as households pushed down the gauge four points to -28, an abyssal level compared with a long term average -2 points. Over the past 12 months, the index stagnated at -29, one point down compared with the previous month. 

A similar downbeat mood was observed concerning the standard of living over the past 12 month index, at -75 and around such ground levels for the third uninterrupted month. Over the next 12 months, the index plunged 12 points to a historical low -65 points.

On price trends over the past 12 months, consumers moved up the index two points to 10 due to inflationary pressures and over the next 12 months, sent it to soar 10 points to -10.