(RTTNews) - French consumer confidence dropped in December after showing an improvement in November as households showed increased pessimism regarding future unemployment and personal financial outlook.

France’s seasonally-adjusted consumer confidence indicator dropped to minus 44 in December from minus 43 in November, the statistical office INSEE said Tuesday. The reading was in line with economists’ expectations.

The second-biggest Eurozone economy escaped recession in the third quarter by growing 0.1%, after contracting 0.3% in the previous three months. Although the economy avoided a recession, the outlook is highly bleak.

According to INSEE, in December, past and expected living standards indicators went down to minus 77 and minus 59 respectively from minus 76 and minus 54. Households were more pessimistic about their future financial position as the corresponding indicator shed one point to minus 20 from minus 19.

The indicator for present financial position dropped to 11 from 12, while the measure for consumers’ opinion regarding past financial position remained unchanged at minus 30.

The balance on the timeliness of making major purchases improved to minus 36, but remained very low, compared to the trend seen during the beginning of the year 2008. Household expenditure increased 0.2% in the third quarter after posting no growth in the second quarter.

Households’ opinion about future unemployment figures continued to increase in December. The gauge rose to 79 from 75 in November. A recent data from the Finance and Labor Ministry showed that the number of unemployed persons rose 3.2% month-on-month in November.

Consumers’ price outlook was stable at minus 47, while their assessment on price changes in the past decreased to 6 from 18. The indicator for timeliness of saving rose to 18 from 12, but pessimism regarding their future saving capacity dropped to minus 18 from minus 16.

In December, business confidence dropped to the lowest level since June 1993.

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