Source:INSEE

23 SEPTEMBER 2011

Consumer Confidence fell two points to 80 as the end of the summer break brought back into the real world concerns over unemployment, a 23 point leap to a record high 71 gauge, in addition to a one point dip of households personal financial situation over the past 12 months index to -29 as August and September recorded renewed Euro area debt concerns while labor market contractions arched over dire future prospects in such context.

Over the past 12 months, households expressed further pessimism and pushed the index three points to -25 and consequently, dented their current savings capacity index by one point to 16. Over the next 12 months, households project to tighten their belts and left the index to stagnate at -13 points for the third consecutive time.  The overall savings capacity index consequently fell four points to 20, since rumors, denied, about each the country's capacity to withstand a systemic shock and A-list banks supposed fragility ordered for common wisdom to save for a better day.

The opportunity to make significant purchases index thus declined two points to -26, back at June levels when volatility engulfed day-to-day life due to Credit Rating Agencies (CRAs) consideration to place the same major banks under review for possible downgrade. The bailed-out state green light, in July, for a second Euro area financial assistance package added further pressure over households since the area‘s debt concerns remain unresolved.

Regarding their standing of living over the past 12 months, households sent the index to -76 points, a historical low and four points further down into negative territory, and equally over the next 12 months to -59 points (from -53 in August).

On price trends over the past 12 months, households acknowledged some improvement as petrol prices inched down despite Brent crude oil prices downswing due to lesser world demand and recession worries. Over the next 12 months, households stayed prudent and made no forecast over future price trends, and froze the index at -18 for the third consecutive month, although food price inflation and constant raw materials prices volatility dented their buying power significantly compared with a year ago.