The French consumer mood is improving despite the accelerating job cuts.
Household confidence in the euro zone’s second largest economy has risen for the third consecutive month. It is the highest since January 2008. France’s National Statistics Office reported that despite a boost in unemployment by more than 21,500 in September, few respondents voiced fears about rising unemployment in the months ahead Over in Italy, consumer morale fell more than expected after six consecutive monthly rises – a reflection of a dimmer view of their personal finances and the economic outlook. Bank lending to companies operating in the eurozone fell in September for the first time on record, according to the European Central Bank. The fall comes despite European governments pumping money into their economies to try to lift lending. The worry is that weak lending from banks will hinder any recovery in the eurozone economy.