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French consumer confidence climbs in July as inflation expectations fall

Inflation expectations in the INSEE survey eased back to -33 from -15, while unemployment prospects improved to 55 from 61.

Reported · Written up by our desk · Central Banks

French household confidence in France extended its recovery into July, with consumer confidence at 86 compared with 85 expected, up from 84 previously, according to Forexlive. The gauge remains well below the February peak of 92 and far under the long run average of 100.

Forexlive said the report points to households feeling better about both their past and expected personal financial situations, with the past and expected financial balance improving by two points to -26 and -14 respectively. Consumers also showed more optimism about their saving capacity, reflecting improved sentiment on the ability to save.

The most notable change was a decline in inflation expectations, with the forward-looking inflation measure falling back to -33 from -15, the softest reading since June last year. The outlet noted the survey period ran from 25 June to 20 July, and most responses were gathered in the first two weeks, when the US-Iran conflict is believed to have settled, while the later resurgence in European natural gas prices may not have been fully captured.

Unemployment prospects also improved, dropping to 55 in July from 61 previously, signaling a better outlook on the economic situation, Forexlive added. INSEE’s data collection timing was cited as a caveat for interpreting how much the survey reflects the most recent energy-driven price developments.

Latest closeNat gas $2.769 ▼3.5%

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