French consumer confidence soars after elections

French consumer spirits were buoyed following the elections, a possible indication that the French had bought into new president Emmanuele Macron's promises of deep reforms to reinvigorate the economy, the results of an official survey revealed.

Although it remained to be seen if such lofty levels of sentiment would hold, some economists said the data pointed to upside risks to household consumption in the euro area's second-largest economy.

INSEE's consumer confidence index jumped from 103.0 points for May to 108.0 in June, easily exceeding analysts' projections for a print of 103.0.

May's reading was revised higher from a preliminary estimate of 102.2 to 103.0.

The print for returned the gauge to its best levels hit just before the financial crisis and set a new cycle high, according to Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.

Lifting the headline reading, a sub-index measuring Frenchmen's expectations for their standard of living increased from -5.0 to -3.0, while another that tracks 'purchasing opportunities' jumped from -12.0 to -1.0.

Another sub-index linked to consumers' expectations for unemployment retreated from 14.0 to 5.0.

The survey data led Vistesen to conclude, "we can't assume this level of sentiment will last, but for now it is clear that French consumers have bought into Mr. Macron’s pledge to deliver bold reforms in order to reinvigorate the economy.

"All in all that is very good news, and the headline index points to upside risk to consumers’ spending."