Decline in French consumer confidence less than market expectation

Consumer confidence in France eased during the month of June, albeit less than what the markets had expected as shoppers remained less buoyant in June after having recorded their best ever month of confidence in nine years last month.

The France consumer confidence index fell to 97 in June, from 98 in May. However, analysts had expected the index to fall to 96 in this month, data released by Insee said Tuesday. Consumers surveyed by the statistics agency remained gloomier regarding their future financial situation and their ability to make large purchases.

Further, French consumers turned pessimistic on their expected living standards over the next 12 months, likely reflecting upcoming political stability as the country heads for a general election next summer. The gauge slipped by six points in June compared to May.

However, households remained upbeat in their financial situation over the last 12 months, with their outlook for the rest of the year remaining broadly stable. Also, households reported a higher tendency to save in a month when the country has been brought to a halt by nationwide labor strikes, reports said.