French consumer sentiment surged to its highest level in over two years in September, as indicated by the latest survey from the statistical office INSEE released on Wednesday.
The consumer confidence index climbed to 95, up from a revised 93 in August. Analysts had projected the score to remain stable at August's initial estimate of 92.
This marks the highest reading since February 2022, although it still falls short of the long-term average of 100.
In September, households expressed improved views on both their past and future financial conditions. The index for past financial situation rose to -21 from -23, while the expectations index increased to -6 from -9.
The percentage of households believing it is a favorable time for major purchases continued to grow, with the relevant indicator improving to -29 from -30 the previous month.
September also saw an enhancement in household assessments of their current and future ability to save. The balance of opinions regarding future savings ability gained five points, and the index for current savings ability advanced by two points.
The percentage of households considering it prudent to save continued to rise, as reflected by a four-point increase in the corresponding index.
Consumers' perceptions of both future and past standards of living showed further improvement. The index that measures future standard of living increased by six points, and the index for past standard of living ascended by three points.
In addition, households' concerns about unemployment eased in September, with the respective balance decreasing by two points to 26.
Simultaneously, the proportion of households who observed a rise in prices over the past twelve months dropped significantly. The index plummeted to 3 from 13. Conversely, expectations for future inflation remained steady at -53.