French consumer confidence deteriorated at the fastest pace on record in April after the government initiated coronavirus containment measures, survey results from the statistical office Insee showed Tuesday.
Amid lockdown, the consumer confidence index fell to 95 in April from 103 in March. However, the reading was above economists’ forecast of 83.
“The indicator lost 8 points, its most important decrease since the creation of the survey, in 1972,” the Insee said.
In April, the share of households considering it was a suitable time to make major purchases dropped substantially. The corresponding balance declined 43 points to -59, the lowest since the creation of the survey.
Moreover, households’ opinion balance on their future financial situation decreased 15 points, which was the strongest fall on the survey history. The score came in at -22, the weakest since May 2014.
Nonetheless, the index for past financial situation gained 5 points to -7.
The indicator measuring whether this is suitable time to save decreased by 5 points to 4.
Households’ opinion balance on their current saving capacity improved 4 points to 20 in April. On the contrary, the expected saving capacity index dropped slightly by 2 points.
Households’ opinion balance about the future standard of living slid 35 points in April, marking the strongest decrease ever recorded in a month. At -71, it was the lowest level on record.
On the other hand, the indicator for past standard of living improved for the fourth consecutive month. The corresponding balance came in at -31 versus -33 in March.
Source: Read Full Article