The declining consumption, stable business climate.

Keywords: consumption, moral, index, PARIS, INSEE.

The 9.5% drop in auto sales dragged the index down consumption, according to latest figures from INSEE published Wednesday. Economists are worried. In May, the morale of entrepreneurs has remained stable.

The effect of scrappage faded, consumption falls. Household spending fell 1.2% in April, according figures published Wednesday by the INSEE. The National Institute of Statistics and Economic Studies has also revised figures for March rose 0.4 points to 1.6%.
In April, auto sales, down 9.5%, pulled the index down. "Their decline comes backlash from sharp increases in late 2009 (+12.5% in the fourth quarter)," notes the INSEE. Clearly, the effect of scrappage, which has boosted sales in late 2009, has faded.

Economists "restless" and "pessimistic":
The consumption figures are "frankly disturbing [s]" alarmed Alexander Law, chief economist at Xerfi. "The austerity announced will deprive the consumer of some infusions that remained." Natixis economists, meanwhile, remain "pessimistic" and expect "a gradual slowdown in demand, stimulated by resurgence of inflation observed recently (1.7% in April).
On the other hand, the morale of entrepreneurs remained stable in May, 96 points, the rebound in April (four points) misfired. The indicator of rollover supposed detected trends, remained in the crash zone.
In detail, "the climate is improving in Industry (97 +1) building (93 +1) and wholesale (5 points compared to March, 92), while it deteriorates in retail (2 points, 103), summarizes the INSEE. It remains stable in ServicesAt 98 points.