In May, French Consumer Confidence Fell to its Lowel Level Since July 2008
In May 2013, households’ confidence about the economic situation strongly declined, with the French statistics agency, Insee, saying its monthly synthetic confidence index lost 4 points to 79 falling to its lowest level previously reached in July 2008. The figure is well below the long-term average of 100.
This statistic confirms that the recession has persisted in France in Q2 2013 after GDP shrank by 0.2% in Q4 2012 and Q1 2013, according to the EU’s statistics office Eurostat.
Moreover, regarding the labor market, despite earlier this month, France passed a range of measures aimed at stopping the rise in unemployment by reforming the country’s labour laws, the consumer satisfaction survey also shows that French households believe the rate of unemployment in the country will continue to rise beyond France’s current rate of 11 percent.
As a consequence, the French economy, which represents about 20% of the Eurozone, could be a drag in Q2 offsetting the positive effect of Germany.