The French are taking on less and less debt despite the low rates. Households are worried about their future and their financial situation is becoming more and more worrying because of unemployment and hiring, which is mainly done on fixed-term contracts.
In recent years, consumption in France has not returned to pre-crisis levels. With a declining purchasing power, the French spend less and prefer to save. Never before has the level of consumer credit been so low, yet interest rates are falling. Only 46.5% of households today hold a loan, a record.
Period of uncertainty
Mortgage loans are decreasing: 30.6% of French people have a loan of this type. It is especially consumer loans that are declining: 25.6% of the French have recourse to it. “A lot of people, especially young people, are on fixed-term contracts. They are afraid of unemployment. Households buy few durable goods such as cars or household appliances, which support debt. There is a housing purchase crisis ”, analysis Henri Sterdyniak, economist at the OFCE at the microphone of France 3. “It is difficult to convince households and businesses to consume in a period of uncertainty”, he concludes.