Despite the news, despite inflation and borrowing rates, the morale of French households seems to be in good shape. Or at least improve. This is shown by the INSEE study which, for the fourth consecutive month, noted in January “a clear increase” in the number of households considering that it is appropriate to make major purchases.
The indicator summarizing this confidence stands at 91, up two points compared to December and even more if we consider the months of November (88), October (85) or September (84). However, it remains below its long-term average, located at 100.
The continued improvement in household morale can be explained in particular by a renewed optimism about the future: there are “significantly” more of them judging that the standard of living in France will improve over the 12 next months (+6 points). And the share of households who consider that the standard of living in France has improved over the last 12 months is also increasing (+2 points).
The balance of opinion on the advisability of making major purchases has gained 5 points, while remaining well below its long-term average. The one on the prospects for development of their financial situation gains two points. That on their past financial situation increases slightly (+1 point). Furthermore, households believe more (+2 points) that it is appropriate to save.
More optimistic also on the unemployment figures
Household fears regarding the outlook for unemployment are diminishing. The balance measuring them (21 points) loses 4 points compared to December and moves away from its long-term average (33 points).
Finally, households are less anxious about inflation: the share of those who anticipate an acceleration in prices over the next 12 months is decreasing. The balance relating to future inflation falls by 5 points and remains below its long-term average.
Households who consider that prices have increased significantly over the last 12 months are also decreasing: the associated balance of opinion has lost 2 points while remaining well above its long-term average.