Whatever we think, the French economy is doing better!

France - Mar 07 2019
  • #credit risk
  • #gdp

Whatever we think, the French economy is doing better!

Household confidence in France rebounded for the second consecutive month in February, increasing more than expected and returning to its levels before the start of the “Yellow Vests” movement thanks to a decline in fears about unemployment and a better perception of their standard of living, despite concerns about rising prices.

Positive signals are multiplying in France
 

 

Positive signals are multiplying for the French economy. After falling sharply last December (-1.5%), the French household goods consumption rebounded in January by 1.2% in volume according to the latest figures from Insee published recently. This trend corroborates the significant improvement in household confidence since the beginning of January, after a low level in December at 86, a new level since October 2014. In addition, the unemployment rate is down 0.3 points to 8.8% of the workforce in France in the fourth quarter of 2018, its lowest level since 2009, according to the latest figures from Insee.

The signals are certainly more encouraging at the beginning of this year, but they should not hide the underlying trend in many Euro area countries. Recovery is still sluggish, and it is not impossible that some countries of the monetary union will see their economic prospects deteriorate in the short-medium term. France will not be an exception ...

Julien Moussavi, Head of Economic Research
Source: Insee, Beyond Ratings



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