According to INSEE, a French statistics agency, the confidence levels of consumers in France have risen faster than expected for the month of May. The levels have now beaten the forecast and reached the highest level of the year. At the same time, the second largest economy is still recovering from all of the anti-government protests.
The agency mentioned that an increase of three points has been measured in consumer confidence in May (99), compared to 96 points in April. Previously, 16 economists predicted only 97 points for the month of May.
In response to protests, the French president Emmanuel Macron promised tax cuts for the people of France. INSEE believes that this pledge is the reason behind an increase in the level of confidence over personal financial situations and general purchasing power.
In its report, INSEE says: “Households are more numerous to consider that the past standard of living in France has improved during the past twelve months or will improve during the next twelve months. The corresponding balances have both gained three points but still remain below their long term average.”