French consumer confidence unexpectedly increased at the start of the year as intentions to make big purchases strengthened, standard of living expectations increased, while fears of unemployment sharply decreased.
The consumer confidence index rose to 97 from 96, figures from INSEE showed Wednesday. Economists had expected the score to remain unchanged.
The 97 reading was previously marked in November. A score higher to this level was recorded in October 2007, when it was 100.
Households were less pessimistic regarding big-ticket purchases with the relevant indicator surging to -6 from -14. The latest reading was previous logged in September.
Consumer pessimism regarding their financial situation in next 12 months increased slightly with the index falling to -8 from -7. Similarly, the expected saving capacity index slid to -6 from -5.
Saving intentions for the next 12 months also eased with the measure dropping to 2 from 6.
Expectations regarding the standard of living in next 12 months improved with the index climbing to -25 from -29.
The indicator showing the expectations on unemployment in next 12 months tumbled to 34 from 45.
The material has been provided by InstaForex Company – www.instaforex.com