Back to country for booklet A, after a few months of recording. In October, the French dipped more into their woolen socks than they put money aside. Livret A collection in October is mostly negative -€1.1 billion for all networks. Its little brother, the Sustainable and Solidarity Development Booklet (LDDS), on the other hand, remains green (+ €290 million).
October is traditionally a bad month for Livret A. It’s a time for spending, not saving. The French spent money for the start of the school year. They have to pay their property taxes, for some the balance of the residence tax and sometimes they have to pay additional income tax. “The October collection is a traditional thing” recalls Philippe Crevel, director of the Cercle de l’Épargne. The French favorite allocation has only had a positive yield twice this month, when the ceiling was raised on October 1, 2012, and in 2011 to €400 million.
Moreover, the outflow this time was much weaker than usual. “This is one of the lowest in the last ten years.“, continues Philippe Crevel.This pretty much confirms the trend of an exceptional year for this placement.” he continues. Running inflation drives households to save more. They put aside to cover their future expenses. Additionally, the rise in the Passport A rate to 2%, a rate we haven’t seen since 2005, has made this product much more attractive.
The Livret A account is now performing better than the Euro fund. July, August and September reached record highs. During the first ten months of the year, it amounted to +29.78 billion euros (Livret A + LDDS). This is significantly more than in 2021 (€20.64 billion), but slightly less than in 2020, when pandemic-related restrictions led to a record fundraising year (€31.73 billion).
Source: Le Figaro
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