Consumer confidence in France has fallen to its lowest level since the 1980’s as the nation slides deeper into recession and as government tax hikes batter consumer spending power.
According to the French Statistics agency, INSEE, its monthly consumer morale index fell by four points in May to 79, down from the 83 recorded in April and far below the long-term average of 100.
Consumers are becoming increasingly concerned over the future outlook of their living standards and employment prospects. Rising unemployment as a result of the nations slide back into recession has caused more people to withhold their spending as they fear over their employment prospects. Currently France’s unemployment rate stands around 11%, and looks set to continue to rise despite the French government introducing a new range of measures aimed at halting the rise in unemployment by reforming labour laws.
Households appreciation of their past financial situation fell by 10 points, while expectations of the future financial situation dropped by 3 points.
The evaluation of the current saving capacity was almost stable in the month, while French consumers’ opinion about their savings capacity in the next 12 months slightly recovered by 2 points. “Households were almost as numerous in May as in April to think that it was a suitable moment to save,” INSEE reported.
Tuesday’s awful data has increased fears that France is going the way of the nations on the Eurozone periphery and is growing increasingly distant from the strength of Germany and the stronger Euro economies.
As a result of the data the Euro tumbled against the majority of its most traded peers.
“This morning’s consumer confidence number from France has missed expectations massively however, and could easily see further declines in European assets. Consumer confidence was expected to rise to 85 from 84 but instead fell to 79; the lowest level since July 2008 and the joint worst ever since the 1980’s. GBP/EUR has headed back towards 1.17 in the aftermath,” said Jeremy Cook at World First.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2928
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8560
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3364
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5940
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7745
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1690
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7489
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6283
(Correct as of 11:35am GMT)