French consumer confidence eased in March from recent strong levels but remained in positive territory, registering two on the INSEE index after a revised four in February, the French statistics office said today.
The March reading showed the second consecutive monthly drop from a downwardly revised record of six in January as concern about price rises and a rash of food safety scares dampened sentiment.
INSEE said consumers were less optimistic overall but the sharpest fall had been in prospects for their standard of living.
"In addition there were fewer households that thought the current period is favourable for making large purchases," the institute said in a statement.
Economists said the drop reflected a number of one-off factors including foot-and-mouth, a stock market plunge and municipal elections.
But they noted the index remained unusually high for traditionally gloomy French consumers.
Economist at Fortis Securities France Ms Virginie Sue said: "This dip was expected but when we look at historical data we see this index is still at very high levels."
France is counting on consumer spending as one of the main engines of economic growth in a year when exports are at risk due to the US economic slowing.
INSEE said consumers' views on employment prospects dropped for the second consecutive month in March while an increasing number thought prices were on the rise.