French consumers are now at their gloomiest in 20 years, a survey shows today in another ominous sign for growth after recent weak data on industry and the housing market.
Consumer confidence fell for an 11th month in a row in May, to -41, its lowest level since 1987 and down from -38 in April, the official statistics institute INSEE said.
Analysts had expected the May data to be little changed and said the latest figures, following a series of weaker indicators, pointed to real trouble for the French economy.
The INSEE report showed falls in all the key indices measured. Consumer sentiment on their previous personal financial situation fell to -32 in May from -30 in April, with the outlook gauge down to -18 from -16.
On the past standard of living, the index fell to -74 from -70, with the forward looking measure down to -49 from -44. Inclinations to buy consumer goods dropped to -31 from -29, the survey showed.
Another INSEE survey earlier this week found French industrialists were turning increasingly pessimistic, prompting analysts to sound a fresh alarm on 2008 economic growth prospects after a strong showing in the first quarter.
Other figures showed that France has not been spared a slump in the housing market, with new home sales plunging 27.9% in the first quarter.
The government remains positive despite the headwinds of soaring oil prices and a US slowdown, with Economy Minister Christine Lagarde saying last week that growth could top the official 2008 forecast of 1.7-2%.
