Consumer confidence in France fell in April to a four-year low on increased worries about declining incomes and lower savings.

The monthly index of household sentiment released on Wednesday by Insee, the official statistics institute, dropped a full three points month-on-month to minus 18. The sense of pessimism in April was also greater than that measured last September.

The data came on top of last week's rise in unemployment in March to 9.1 per cent from 9 per cent of the active population. Taken together against an uncertain international economic climate, this provided a sombre backdrop to the closing days of the Socialist-led Jospin government.

The main concern shown by households was the threat to living standards and a gloomy outlook over any short-term improvement. Here the indices fell back to levels not seen since early 1998.

For the past 2½ years French economic growth has been sustained by robust domestic demand. Since last autumn this has tailed off despite tax rebates for low income groups in September and again this January to stimulate spending.

The latest survey of household opinion was conducted by Insee on April 22, one day after the surprise first round presidential election result which saw the emergence of rightwing extremist Jean-Marie Le Pen as the challenger to Jacques Chirac, the incumbent president.

It is not clear as to the extent to which this affected sentiment but analysts said the pervading sense of pessimism would complicate the task of the next government and encourage measures to boost incomes.

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