French consumer confidence declined slightly in February, erasing the gain logged in the previous month, as concerns over rising unemployment continued to haunt, damping economic expectations.
The consumer confidence index fell to 85 from January's 86 to equal December's score, survey data from INSEE showed Thursday.
Economists had expected the index to remain unchanged at 86. Households' view on the general economic situation in next 12 months deteriorated sharply in February. The corresponding index shed 5 points.
Consumers' view on their financial situation in the next 12 months weakened slightly. More households expect prices to fall in coming months and the relevant survey balance hit the lowest since March 2010, reaching well below its long-term average. Unemployment worries worsened for a second consecutive month in February.
The corresponding index rose 3 points, following a 4-point gain in January and held above its long-term average.
This week, the European Commission predicted that France is set for a slow recovery, led by a timid pick up in private consumption, while high unemployment is likely to remain.
The commission expects the economy to grow 1 percent this year, slightly faster than the 0.9 percent expansion forecast earlier. The prediction for 2015 was left unchanged at 1.7 percent.
France's unemployment increased further in January and hit a new record high, thwarting President Francois Hollande's efforts to reduce unemployment in the country, data released by the Labor Ministry revealed on Wednesday.
The number of persons without a job increased by around 8,900, or 0.3 percent, in January compared to the prior month, when a similar rise was recorded.
Unemployment in Europe's second-largest economy has now reached an all-time high of 3.32 million.
That said, there was further decline in the number of young people registering at employment centers, marking the ninth successive drop in this category.
The European Commission has forecast the French jobless rate to rise to 11 percent this year from 10.8 percent in 2013. The figure is projected to remain unchanged next year.
rttnews.com
The consumer confidence index fell to 85 from January's 86 to equal December's score, survey data from INSEE showed Thursday.
Economists had expected the index to remain unchanged at 86. Households' view on the general economic situation in next 12 months deteriorated sharply in February. The corresponding index shed 5 points.
Consumers' view on their financial situation in the next 12 months weakened slightly. More households expect prices to fall in coming months and the relevant survey balance hit the lowest since March 2010, reaching well below its long-term average. Unemployment worries worsened for a second consecutive month in February.
The corresponding index rose 3 points, following a 4-point gain in January and held above its long-term average.
This week, the European Commission predicted that France is set for a slow recovery, led by a timid pick up in private consumption, while high unemployment is likely to remain.
The commission expects the economy to grow 1 percent this year, slightly faster than the 0.9 percent expansion forecast earlier. The prediction for 2015 was left unchanged at 1.7 percent.
France's unemployment increased further in January and hit a new record high, thwarting President Francois Hollande's efforts to reduce unemployment in the country, data released by the Labor Ministry revealed on Wednesday.
The number of persons without a job increased by around 8,900, or 0.3 percent, in January compared to the prior month, when a similar rise was recorded.
Unemployment in Europe's second-largest economy has now reached an all-time high of 3.32 million.
That said, there was further decline in the number of young people registering at employment centers, marking the ninth successive drop in this category.
The European Commission has forecast the French jobless rate to rise to 11 percent this year from 10.8 percent in 2013. The figure is projected to remain unchanged next year.
rttnews.com
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