The indicator, calculated on the basis of balances of opinion (difference between the proportion of positive and negative responses), gained four points compared to May, but remains below its long-term average. The French are ready to make more major purchases.

Traders can expect to see more customers with the rebound in household morale.

Despite the crisis, the French remain hopeful. Household confidence in the economic situation rebounded by four points in June, during which deconfinement continued in France. But, at 97 points, household confidence remains below its long-term average (100), recalls INSEE in a summary.

In June, households were also much more optimistic about their future financial situation, with an increase of 12 points. But this indicator also remains slightly below its long-term average.

Ready to make major purchases

While the news on the health front is reassuring, the proportion of households believing that it is opportune to make major purchases is also “very sharply up” (+31 points), after a “historic decline” during the period. confinement. Thus, this indicator has returned to its long-term average, after five consecutive months of decline, specifies INSEE.

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On the other hand, household fears concerning the evolution of unemployment increased slightly in June (+2 points), thus reaching “the level of the peak of June 2013, without reaching the historic level of spring 2009”. Experts predict a significant rise in unemployment in 2020, even though the resumption of activity from May 11 allowed 149,900 people to find jobs last month.

Against this backdrop, the share of households believing that it is appropriate to save increased by one point in June, however, falling below its long-term average. Economists and the government scrutinize household morale, because it is an important element in assessing the future level of consumption in France, the main engine of economic growth and key element for the recovery.

Source AFP