INSEE is publishing a study showing that French households’ confidence in the economy deteriorated in January 2021. Faced with financial difficulties, they consider it more appropriate to save than to consume.
Household confidence in the economy in France fell sharply in January 2021 after rebounding in December, with the share of those who want to save approaching its all-time high, INSEE reported on January 27.
“The opportunity to make major purchases” is “in decline”, while that of saving is “very strongly increasing,” said the National Institute of Statistics.
Against the backdrop of the renewed intensity of the Covid-19 epidemic and faced with financial difficulties, the proportion of households who consider it appropriate to save is thus increasing “very strongly” and “has reached its level of December 2012, very close to its all-time high ”, reached in 1994 and 1995, further notes INSEE in its press release.
The synthetic indicator which reflects household confidence in the economy loses three points, to 92 points against 95 points reached in December, and a long-term average of 100.
The indicator that reflects the propensity of the French to consume or save fell in November to 89, its lowest level since the yellow vests crisis in December 2018.
“In January, the proportion of households believing that it is opportune to make major purchases drops sharply”, according to the press release which adds that the opinion of households in relation to their future financial situation is deteriorating sharply, even if it remains better than in November.