Despite record unemployment, the French have a big morale – Challenges.fr

The confidence of French households improved further in April, reaching its highest level since January 2010 despite strong fears about unemployment , according to an INSEE survey published Tuesday, April 28.

The indicator that synthesizes the moral household is one point increase in April compared to March and amounted to 94. This figure is nevertheless still below its average since 1987 (100), said the National Institute of Statistics and Economic Studies in a statement.

Note that the household fears about unemployment increased by 15 points in April compared to March, which had experienced a similar decline. Unemployment reached a new record in March with 3.51 million job seekers without metropolis activity, according to figures released Monday.

Highlights explaining the overall increase in confidence, the views of households on their past personal financial situation will improve (+2 points) and that their future personal financial situation continues (+1 point)

Another indicator rising.: savings capacity

Households are more numerous in April to consider it advisable to make major purchases (2 points). “The corresponding balance gained 16 points since September 2014,” said INSEE, noting it stood further above its average since 1987 to its highest level since October 2007.

Another indicator up: saving capacity. In April, the French have more confidence in their future saving capacity (+3 points), the highest level since January 2001 for this indicator. The current saving capacity remained stable (+1 point).

Households’ opinion about the past and future living standards in France remains stable, with outstanding balances still well below their average long time.

In a low inflation environment, households expect a further price increase (+3 points) ahead. But the balance corresponding to their feelings on past price increase is stable at its lowest level since 1999, according to INSEE.

“This confidence up suggests that households are feeling the benefit of very low inflation, which offsets the negative impact of a labor market still struggling. We believe that private consumption will be the main driver of growth in 2015, “said in a note Diego Iscaro, economist at IHS economics .

(With AFP)