French household confidence dips slightly, spending optimism intact

France’s public sector budget deficit widened last year but not quite as much as the government had expected

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The confidence index for French households saw a slight decline in March, with citizens expressing concerns about their future financial outlook, according to data released by the French National Institute of Statistics and Economic Studies (INSEE).

Despite the dip, the data indicated growing inclination toward spending over saving, signaling early signs of improvement in domestic consumption.

INSEE reported that the French household confidence index fell to 92 points in March, down from 93 in February but remaining above its long-term average of 100 points, reflecting continued caution among households regarding their economic future.

The index, which is based on household survey responses, showed a marked decline in optimism about their personal finances, with that component of the index falling by 7 points to -11. Confidence in past financial conditions also dipped slightly by 2 points to -7.

Meanwhile, France’s public sector budget deficit widened last year but not quite as much as the government had expected, official data showed on Thursday.

The statistics agency INSEE said the 2024 public accounts showed a fiscal shortfall of 5.8 per cent of economic output, up from 5.4 per cent in 2023 but better than the government’s last estimate of 6.0 per cent.

The government had to repeatedly hike its 2024 deficit expectations as spending came in higher than expected and tax income fell short of estimates.