French consumer confidence falls to 80 in October, lowest since June 2013

Confidence hits a 13-year low

France's national statistics institute INSEE said on Tuesday, 27 October that its household confidence indicator fell five points to 80 in October. That is the lowest level since June 2013 and well below the long-run average of 100. The reading also came in below the median forecast of 85 in a Bloomberg survey and below analyst expectations.

Personal finances drive the drop

Households' view of their own finances weighed most on the index. The balance of opinion on their future financial situation fell nine points, and their assessment of their recent situation dropped six points. Expectations for living standards in France fell six points, while the assessment of recent living standards lost three points, the lowest since the survey began in October 1972.

Worries about jobs and spending also grew. The balance of expectations for unemployment rose five points, and the share of households seeing a good time for major purchases fell by four points. The savings climate indicator lost two points to 118, still well above its historical average, but the share of households saying it is a good time to save fell six points, the second monthly decline in a row.

INSEE October reading80

Bloomberg survey median forecast85

Long-run average100

INSEE October reading

80 index points

Bloomberg survey median forecast

85 index points

Long-run average

100 index points

Data from the article text

Shocks behind the slump

Bloomberg and ANSA describe a run of shocks, from a sell-off in French government bonds to protests against the cost of living that turned into rioting. The protests of 17 October included violence and looting, according to LesEchos. Inflation concerns also strengthened in the October survey, INSEE reported.

Release timing

The figures were published on the day a vote on the budget bill, the legge di Bilancio, was expected in parliament. The release therefore landed alongside a political event that is itself tied to the government's fiscal choices.