French Consumer Morale Continues To Improve In November

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French consumer confidence continued to improve, rising for a fourth month in November, as the economy sustained growth in the third quarter.

The consumer confidence indicator climbed to minus 30 in November from October's revised reading of minus 34, survey data released by the statistical office Insee showed Friday. It matched the reading recorded in December 2007. Economists had forecast the index to log a reading of minus 35.

Among the sub-indicators of the consumer confidence indicator, a measure for households' view on financial situation in the past twelve months rose to minus 22 in November from minus 25 in October, while the outlook indicator grew to minus 8 from minus 12.

Households were more confident about past and future general economic situation. A gauge for economic conditions in the past twelve months increased to minus 66 from minus 70 and that for future twelve months moved up to minus 35 from minus 39. The survey also revealed that consumers are now more willing to make major purchases. The corresponding measure stood at minus 19 in November, up from minus 24 in October.

Moreover, the statistical office said households' expectations about unemployment decreased 3 points in November. However, this improvement is of a lower magnitude than in the previous four months. From June to October, unemployment had decreased by no less than 31 points.

Yesterday, France's Employment Ministry said the number of unemployed persons rose 2% month-on-month in October. Year-on-year, the number increased 25%.

The number of unemployed increased 52,400 from September to reach 2.63 million. This was the fourth month of increase in the unemployed figure.

Households still expect inflation to be lower than usual, Insee said. In November, as well as for the last six months, consumers report a low past inflation and expect a low future inflation.

On November 24, Insee said business confidence in the French manufacturing industry stabilized in November, while consumer spending in October rose more than expected. The French economy continued to recover in the third quarter. Preliminary estimates showed that gross domestic product expanded 0.3% sequentially in the third quarter, at the same pace it grew in the second quarter.

French consumer confidence continued to improve, rising for a fourth month in November, as the economy sustained growth in the third quarter. (Market News Provided by RTTNews)