According to the report from INSEE, in May, the consumer confidence indicator fell to 88 points from 91 points in April (revised from 92 points). As a result, the index reached its lowest level since December 2024 and further retreated from its long-term average (100 points). Economists had expected the index to rise to 93 points. Almost all balances contributed negatively to the evolution of household confidence.
INSEE said that the index, which evaluates the opinion of households about their future financial situation, fell to -14 points from -11 points in April. The index reflecting the opinion of households regarding their past financial situation decreased by 5 points to -25 points. The balance of opinion regarding the opportunity to make major purchases fell by 4 points to -27 points. The proportion of households believing it is a good idea to save remained unchanged - the corresponding balance was 35 points, well above its long-term average. Meanwhile, the index assessing the opinion of households regarding their current ability to save fell by 1 point, to 17 points. The balance of opinion related to their future ability to save dropped by 1 point to 10 points.
The data also showed that the households' opinion on the future standard of living in France has fallen sharply again: the associated balance has dropped by 5 points, to -59 points (lowest level since April 2023). The one related to past standard of living has fallen by one point. Both balances remain well below their long-term averages.