French Consumer Confidence Unexpectedly Declined in December
French consumer confidence unexpectedly slipped in December for the first time in four months as concerns about purchasing power outweighed the impact of government incentives to spur the economy.
A gauge of household sentiment fell to minus 31 from an almost two-year high of minus 30 in November, Paris-based national statistics office Insee said today. Economists expected a reading of minus 30, according the median forecast of six economists in a Bloomberg News survey.
President Nicolas Sarkozy’s government this year will reduce the tax cuts and car-purchase incentives that helped end France’s worst recession in 60 years in the second quarter business card. The reduction in stimulus comes as France’s jobless rate, currently at a three-year high of 9.5 percent, is set to climb to 10.2 percent by the middle of this year, Insee said on Dec. 18.
Consumer spending, which accounts for about 15 percent of the economy, unexpectedly fell in November as households grappled with the impact of rising unemployment.
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