French consumer confidence gets major boost, hits highest level since Macron took office

French consumer confidence rose unexpectedly in November, hitting the highest level in over two years by gaining two points on the index. The INSEE official statistics on the monthly consumer confidence survey said that the household confidence index rose to 106 from 104 in October.

After two months of stability at 104 points, households’ confidence in the economic situation increased by two points on the synthetic index and remained above its long-term average of 100. According to the official data, households' opinion balance on their future financial situation gained two points and the one related to the past financial situation gained one point.

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Fall in current saving capacity

The INSEE, in its report, said that the share of households, on the future financial situation, slightly increased from last month, considering it is a suitable time to make major purchases. “The corresponding balance has increased by one point and remains well above its long term average,” said the agency.

In terms of expected saving capacity, households’ opinion remained stable but the current saving capacity balance has fallen by one point. “Nevertheless, both balances remain well above their long-term average,” read the report. The major boost to Macron’s economic policies was reflected from the Households' fears about the unemployment trend, that declined in November becoming lowest since August 2017. 

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Surprising increase

The rise in consumer confidence came as a huge surprise since a major strike by the public sector unions is scheduled from December 5 against Macron’s planned pension reform. Last year, the consumer confidence collapsed due to yellow vest protests demanding increment in minimum wages, tax burden, rising fuel prices and high cost of living. It began as a revolutionary movement in 2018 demanding economic justice.

The protesters chose yellow vests as "a unifying thread and call to arms”. Yellow vests are used because of their accessibility, cost, convenience, visibility, and association with working-class industries. In France, all drivers are required to wear yellow vests and to wear during emergency situations.

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