July data shows sentiment improving for the third straight month but remains below long-term averages amid softer inflation expectations.
French household confidence climbed to 86 in July, exceeding the 85 forecast and marking a third consecutive monthly gain. The reading, however, sits well below February’s peak of 92 and the long-term average of 100, reflecting lingering economic caution.
Consumers reported improved perceptions of their financial situations, with past and future assessments rising to -26 and -14, respectively. Optimism about saving capacity also increased, though inflation expectations fell sharply to -33, the lowest since June 2023.
The survey, conducted between June 25 and July 20, may not fully capture recent energy price volatility, as most responses were collected in early July. Unemployment expectations also improved, dropping to 55 from 61 in June.