The improvement of deconfinement is already far away. The crisis is weighing on household morale, which falls again in July and threatens the recovery, according to a new report from INSEE published on Wednesday.
Fearing for the future, the French are more likely to consider that it is opportune to save, noted the National Institute of Statistics, while their confidence is necessary to revive consumption. The synthetic indicator measuring this confidence drops by two points to 94, below its long-term average of 100.
100 billion saved by the end of the year
"In July, the share of households believing that it is appropriate to save increases for the third consecutive month: the corresponding balance gains 9 points and thus exceeds its long-term average", according to the INSEE press release. The savings that the French began to accumulate during the confinement period, and which has turned into precautionary savings, should reach 100 billion euros by the end of the year, according to the government. Its mobilization to revive the economy through consumption is an important issue in the current recovery.
The balance of opinion of households in relation to their past financial situation drops by three points, even if it remains above the long-term average, and "the proportion of households considering that it is appropriate to make major purchases drop slightly ”.
More generally, the share of those who consider that the standard of living has improved over the past 12 months "fell sharply for the third consecutive month", further notes INSEE. Finally, “household fears regarding the trend in unemployment fell very slightly in July”, but they remain well above the long-term average.
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