French household confidence extends recovery into July
- July consumer confidence 86 vs 85 expected
- Prior 84
The reading continues to reaffirm a further rebound in French consumer sentiment in July, though keeping well below the peak earlier this year in February of 92. And overall, the estimate is still well below the long-term average reading of 100.
French households are seen feeling better about their personal financial situation, past and future, in July. Both estimates of the past and expected financial situation showed a two point increase to -26 and -14 respectively on the month. Besides that, consumers also were more optimistic about their expected saving capacity and current ability to save. So, there's that.
But perhaps the most notable part of the report is a drop in inflation expectations i.e. future inflation, with the estimate falling back to -33 (previously -15). That is the softest reading since June last year.
However, it is likely that the survey response was tabulated mostly from early July when the US-Iran conflict is believed to have settled down. Thus, the findings have not quite accounted for the latest plot twist in recent weeks with a resurgence in energy prices - especially European natural gas futures.
INSEE notes that the survey responses were collected between 25 June to 20 July but that "most households answer during the first two weeks of collection".
So, just keep that in mind.
Other than that, unemployment prospects also dropped to 55 in July (previously 61) and that signals a better outlook on the economic situation. But as mentioned, just keep in mind the caveat above.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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