French household confidence rises by two points.

Unexpected strength - critics say it can’t last.

Strongest reading since mid-2002.

Critics say that this spurt cannot last. A rise in confidence after the elections was expected. But this continuing rise is now on thin ice, or so many contend. A look at the survey responses may prove the critics correct, however. At best improved household confidence is speculative.

Much of the reason for the improved tone in the survey is based on the expectations of higher living standards over the next 12months. This response in the 80th percentile of its historic range is one of the stronger responses in the survey.

Consumers also expect to make more purchases. Car, home, and home renovation spending are high on consumers’ lists although NONE OF THESE improved in the current month. Oddly plans for consumer durable purchases are very weak, in the bottom 10% of their historic range. Expectations for unemployment in the next 12 months are in the bottom third of their range; the ability to save is in the 97th percentile for the next 120 months.

The current financial situation is only rated in its 38th percentile. For the past 12 months it is rated in its 65th percentile. For the next 12-months it is rated in its 81st percentile.

A lot is riding on the future, even the French admit; they ain’t seen nothin’ yet...it’s what they expect to see in the future that is driving confidence.

Sarkozy better be able to deliver the goods.