--French February consumer confidence index +5 vs +7 in January
--French Feb consumer confidence in line with market forecasts

By BridgeNews
Paris--March 2--France's consumer confidence indicator eased back in February to +5, from its record high of +7 in January, according to the national statistics institute INSEE. The slight worsening of the outlook regarding future standard of living and financial situation was, however, in line with analysts' forecasts, as a minor correction to the index was expected.
* * * The data released Friday showed that optimism eased back in each area surveyed. Although respondents said prices had been stable recently, an increased number expected price rises over coming months.
After four months of improvement there was a marked increase in fears of unemployment. The February indicator assessing such concerns fell to -19 from the -29 reading of the prior month. In contrast to the other components where a smaller negative number means a rise in confidence, on unemployment, a larger positive balance signals increasing fears of joblessness.
However, as the February survey was carried out before the government announced the latest sharp drop in the jobless rate (to 9% in January from 9.2% in December), this indicator is expected to recover in the next survey.
There was a slight fall in February in the number of respondents who believed now was a good time to make a major purchase while more replied that their current financial situation had worsened.
Similarly, the latest survey showed increased pessimism about ability to put money aside. An increased level of caution was also evident in the fact that more households than in January said they believed now was a good time to save.
Despite the easing back of the overall indicator analysts insist that household confidence remains solid in France, underpinned by steadily falling unemployment.
The correction in February, according to some, could be due to a number of factors including the recent slight rise in petrol prices and Bovine Spongiform Encephalopathy, or the mad cow, crisis. Few, however, believe there is yet a real danger of the plunge in U.S. consumer confidence spreading to French households. End