French consumer confidence hit a new high in January, beating market forecasts and underscoring the health of domestic demand in the euro zone's second largest economy.
The INSEE French consumer confidence index jumped to 7 in January, beating a previous record high of 3 set in December and defying economists' forcecasts the index would fall to 1.
"This progression reflects the marked improvement in households' opinion of the recent evolution of the standard of living in France," INSEE said in a statement.
The high level of optimism among households provided a positive signal for French growth prospects. It contrasts with surveys that have shown a more negative attitude among industry heads fearful of the impact of a US slowdown.
French consumer confidence has risen steadily since dropping sharply to -7 in September amid discontent over fuel prices. Economists credit the upward trend to income tax cuts and a continuation of a steady decline in unemployment.
Reuters
