Hélène Baudchon, Research Analyst at BNP Paribas, suggests that with spending almost flat in the first quarter, purchasing power falling significantly and confidence waning further in June, the latest data regarding French consumers do not make pleasant reading. Key Quotes “The fall in the purchasing power of disposable personal income is down to the specific timing of tax measures in the 2018 budget.” “The good news is that the personal saving rate has played its role as a buffer: by reducing their savings, consumers have avoided reducing their spending, despite purchasing power losses.” “The decline in consumer confidence in the first quarter, more specifically in February, was also down to these tax effects. Afterwards, we expected consumer confidence to resume its rise, thanks to the improving labour market. However, we are still waiting for that to happen.” “Higher inflation is another negative factor, which brings us to the question of the outlook for consumer spending.” “We would be less concerned by a rise in core inflation, which would signal strong momentum in growth and wages.” “On the upside, the labour market is improving, although evidence of a more tangible positive impact of this improvement on consumption is still lacking so far.” “In addition, from the end of 2018, consumers’ disposable incomes and spending should receive a significant boost from planned tax cuts, that is the scrapping of employee health and unemployment insurance contributions and a reduction in housing tax.” “To sum up, we have no doubts that consumer spending will pick up by the end of the year; the only question is by how much.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China’s Foreign Ministry: No details to be provided on implementation of said tariffs FX Street 4 years Hélène Baudchon, Research Analyst at BNP Paribas, suggests that with spending almost flat in the first quarter, purchasing power falling significantly and confidence waning further in June, the latest data regarding French consumers do not make pleasant reading. Key Quotes "The fall in the purchasing power of disposable personal income is down to the specific timing of tax measures in the 2018 budget." "The good news is that the personal saving rate has played its role as a buffer: by reducing their savings, consumers have avoided reducing their spending, despite purchasing power losses." "The decline in consumer confidence in the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.