France is going through a delicate period on several levels. The economic situation in the country is at the center of concern in this political situation marked by the pre-election campaign for early parliamentary elections. This situation is not without its effect on the morale of the French.
According to a study conducted by the National Institute of Statistics and Economic Studies (Insee) and published this Wednesday, June 26, the French are not optimistic about the evolution of their finances in the future. In June, more people think prices will accelerate over the next 12 months.
In detail, this study reveals that the French are prey to several uncertainties in this political situation. According to INSEE, many people are pessimistic about the future standard of living in France.
Thus, the index that measures the state of the nation and the perception of the future was 89, which is one point less than in May (90). This index remains “well below” its long-term average (100), the National Institute of Statistics said in its press release.
More French people think prices will accelerate
As for the opinion of households about their past personal financial situation, it ranged from -24 in May to -25 in June, according to the same study. The future personal financial situation went from -14 in May to -13 in June.
The study also reveals that the share of households who consider it appropriate to make major purchases fell slightly, from -33 in May to -32 in June.
Moreover, in terms of savings, the current capacity of French households increased by 3 points, from 15 in May to 18 in June. However, future savings capacity fell sharply, from 11 points in June to 7 points in May.
Households also said they were more pessimistic in their outlook future standard of living in France (-46 in May to -50 in June). The share of those who think that prices will accelerate in the next 12 months has increased (-53 in May to -47 in June).
Note that, according to the definition of INSEE, the French morale index is “a synthetic indicator of household confidence that summarizes their opinion about the economic situation: the higher its value, the lower the household’s assessment of the economic situation is more favorable.
The average is 100. An index above this average means that the French are quite optimistic about the economic situation in the country and vice versa.
