French consumer sentiment deteriorated for the second straight month in July as households turned more skeptic about future economic and labor market conditions.
The consumer confidence index slid unexpectedly to 87 in July from 89 in June, the results from a survey by statistical office Insee revealed Friday. Economists were expecting the index to remain unchanged at June's originally reported value of 90.
The survey showed that the assessment of the past as well as future general economic situation deteriorated in July. The past economic situation gauge lost 1 point and the future expectations were down sharply by 13 points.
While households' assessment of past financial situation held steady at -24, expectations for the coming year fell by 2 points to -19.
The assessment of both current and future saving capacity fell 1 point each in July. Households judged July to be a less suitable moment to save than June.
Households' opinion on the timeliness to make major purchases declined to -26 from -20. The sub-index to measure unemployment for the coming 12 months climbed to 75 from 67.
According to the Labor Ministry, the number of registered job seekers in mainland France rose by 23,700 to 2.946 million in June.
The French carmaker PSA Peugeot Citroen said earlier this month that it plans to cut 8,000 jobs and close its Aulnay plant. To alleviate the weak situation in the auto industry, the government on Wednesday unveiled aid package to help boost demand.
As the debt crisis continues to take its toll, the International Monetary Fund slashed its growth forecast for the second largest Eurozone economy to 0.3 percent this year and 0.8 percent in 2013.
by RTT Staff Writer
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