Survey data from France's INSEE (The National Institute of Statistics and Economic Studies) revealed an unexpected improvement in consumer confidence at the beginning of the year.
The consumer sentiment index increased to 91.0 in January, up from 89.0 the previous month and topping projected expectations of 90.0.
All elements of the consumer confidence index showed strengthening or remained steady in January, with the exception of past and future inflation indicators.
Households demonstrated improved optimism regarding their expected financial situation, with the balance of opinion gaining two points, nearing its long-term average. The index measuring the past financial situation rose by a single point.
The view of households about the opportunities to save also increased by two points, with the index reaching 40, shifting away from its historical average. The index measuring the current ability to save remained steady at 14. Similarly, the expected saving capacity index did not move from its position and stayed at 7.
There was less pessimism about the standard of living in France among households. The future standard of living indicator increased to -38 from -44. The past standard of living index posted at -76, a slight increase from -78 a month ago.
The index reflecting major purchase intentions significantly increased to -35 from -40.
Households showed less fear about job loss in January with the corresponding balance for unemployment worries falling 4 points to 21.
In January, fewer households believed that consumer prices would rise over the following year. The future inflation opinion balance dropped 5 points to -55.
There was a slight decrease in households believing that consumer prices had risen significantly over the past twelve months, with the associated balance falling to 52 from 54 the previous month.
The survey was administered to a pool of 2,000 households between January 2 and January 18.
