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French optimism dips
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June 6, 2000: 5:50 a.m. ET
Consumer confidence stays close to all-time high in survey for May
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LONDON (CNNfn) - French consumer confidence dipped in May but stayed close to a record high set in April, an official report said Tuesday. The survey by national statistics institute INSEE said the components of the index showed a slight drop in optimism about future living standards, and fewer people expected further reductions in unemployment.
The overall index, based on questions about finance and purchasing intentions, fell to 1 from a record 2 in April. May was only the second month the overall index stood in positive territory since recordings started in 1987. The increase in consumer confidence the previous month was in line with recent upbeat economic reports, building a rosy outlook for the euro currency zone's second-largest economy.
The drop in the sub-index that measures employment expectations followed April's fall in the jobless rate below 10 percent for the first time since 1991, to 9.8 percent. Unemployment has declined steadily since June 1997.
"Globally, confidence is still positive but we can't expect sales to take off or spending to surge," said Dominique Barbet, an economist at Paribas. "What seems to be happening is that while the jobless rate is falling, people are seeing less salary rises as the 35-hour week brings wage moderation, so morale is not so good among consumers."
The report showed a slide in the part of the index that reflects expectations of future living standards, falling to 4 in May from 10 the previous month, while perceptions of past living standards were unchanged at -11.
INSEE surveys about 2000 people, calculating the index by subtracting negative responses from positive. 
--from staff and wire reports
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INSEE
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