French household morale improved for the third consecutive month in December, while remaining well below its historical average, INSEE indicated on Friday. While its long-term average is set at 100, the indicator stands at 89 in December, after 88 in November, 85 in October and 84 in September, details the National Institute of Statistics and Economic Studies in a communicated. The continued improvement in household morale in December is mainly explained by renewed optimism about their future ability to save, with this sub-indicator increasing by 4 points over one month.
Consumers are also slightly more optimistic than in November regarding their current saving capacity (1 point), in a context of persistent inflation which pushes the French to save more than before the Covid-19 pandemic, to the detriment of consumption. Thus, in December, “the balance relating to the opportunity to make major purchases remains well below its historical average, while that concerning the opportunity to save remains well above,” explains INSEE.
Households’ expectations relating to the future development of their personal financial situation remain stable, and “below their historical average”, specifies INSEE, which put inflation at 3.5% over one year in November . Regarding the rise in prices, “the opinion of households on future inflation is unchanged”, while “the share of households who consider that prices have increased significantly over the last 12 months decreases very slightly”. Finally, the French’s fears regarding unemployment are easing slightly, with the sub-indicator concerned falling by one point over one month while remaining below its historical average.
