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French optimism hits high
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May 3, 2000: 6:14 a.m. ET
April consumer confidence index climbs to record as unemployment falls
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LONDON (CNNfn) - French consumer confidence rose to a record high in April as unemployment fell and proposed tax cuts raised optimism in the euro zone's second-largest economy.
The monthly household confidence index rose to 2 from a reading of minus 2 in March, said INSEE, the National Statistics institute. Economist polled by Reuters expected, on average, a forecast of about minus 1.3.
French unemployment fell to 10 percent in March, its lowest for more than eight years. The survey showed a decline in expectations that joblessness will rise.
Consumer confidence is expected to get another shot in the arm after Socialist Prime Minister Lionel Jospin promised last month to slash taxes. The government has already vowed to cut taxes by 80 billion French francs ($10.99 billion) this year, and new Finance Minister Laurent Fabius has vowed to slice another 90 billion francs off the tax bill during the next two years.
"The big rise in future living standards is clearly linked to tax cuts," said Stephane Deo, an economist at Goldman Sachs.
The French survey interviews 2000 people about personal finance and spending patterns in the first three weeks of each month. 
--from staff and wire reports
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INSEE
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