French Economy Shows Resilience as Consumer Confidence Rises

(Bloomberg) --

French consumer confidence rose unexpectedly in November to reach its highest level in over two years, indicating domestic resilience of the euro area’s second-largest economy spurred by President Emmanuel Macron’s fiscal stimulus.

Confidence hit its highest level since June 2017 -- the month after Macron was elected -- as households became more optimistic about their financial situation and their ability to make significant purchases. Fears of unemployment fell further below the long-term average and consumers’ assessment of living standards improved.

Sentiment had tumbled during the Yellow Vest protests at the end of 2017. Since then, Macron has announced around 17 billion euros ($18.7 billion) of tax cuts, targeting low-income households in particular.

Upbeat sentiment in France stands in contrast to a gloomy mood in Italy, where consumer confidence dropped sharply to the lowest level in more than two years. Both the assessment of the overall economy and its prospects fell.

--With assistance from Barbara Sladkowska.

To contact the reporter on this story: William Horobin in Paris at whorobin@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Jana Randow

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