French family sentiment worsened considerably in April with this being the bottom studying since Might 2023. Of observe, households’ opinion concerning their private monetary scenario, each previous and future, has clearly deteriorated. The index on the longer term monetary scenario fell to -20, marking its lowest estimate since March 2023.
Inflation worries are evidently the most important concern with opinion on future inflation leaping considerably to its highest since April 2022. In different phrases, it reignites the fears that have been final seen again through the power worth surge from the Russia-Ukraine battle. On the similar time, unemployment fears additionally elevated markedly to its highest since June final yr.
In due time, this sort of dour sentiment will result in a much bigger drag on home demand circumstances. That particularly if the US-Iran battle continues to tug on and better power costs turn out to be extra embedded into the general worth pressures.
