French Household Confidence Sees Slight Decline Amid Cautious Optimism On Spending

Sumaira FH Published March 26, 2025 | 11:30 PM

PARIS, (UrduPoint / Pakistan Point News / WAM - 26th Mar, 2025) The confidence index for French households saw a slight decline in March, with citizens expressing concerns about their future financial outlook, according to data released by the French National Institute of Statistics and Economic Studies (INSEE).

Despite the dip, the data indicated a growing inclination toward spending over saving, signalling early signs of improvement in domestic consumption.

INSEE reported that the French household confidence index fell to 92 points in March, down from 93 in February, and remains below its long-term average of 100 points — reflecting continued caution among households regarding their economic future.

The index, which is based on household survey responses, showed a marked decline in optimism about future personal finances, with that component of the index falling by 7 points to -11. Confidence in past financial conditions also dipped slightly by 1 point to -21.

In terms of general expectations for the French economy, the assessment of future living standards dropped by 3 points to -50, highlighting ongoing concerns about the economic outlook. However, views on recent economic conditions improved slightly, with the index rising by 1 point to -69.

On the employment front, concerns about unemployment showed a significant decrease, with the related index falling by 8 points to 46 — suggesting a modest improvement in the labour market or at least reduced anxiety around job security.

Regarding prices, the number of households that believe prices have risen sharply over the past 12 months declined, with that index dropping by 2 points to -7 — its lowest level since July 2021.

Conversely, expectations of future price increases rose slightly, with that index climbing by 2 points to -41, reflecting persistent concerns about inflation in the months ahead.