PARIS (Reuters) - French consumer confidence fell unexpectedly in April as debt-burdened households grew more wary about their deteriorating finances and high unemployment, official data showed on Tuesday.
The INSEE state statistics agency said its consumer confidence index dropped this month to 85 from 88 last month. Economists polled by Reuters had expected on average an unchanged reading with the lowest estimate at 86.
The drop was the latest sign that French consumers are reluctant to play their traditional role as the motor of growth in the euro zone's second-biggest economy as a recovery struggles to take hold.
INSEE said that households' view of their personal finances dropped the most in April in more than 20 years, bringing it to its lowest level since December 2011.
Household debt has risen to record levels in France, reaching 83.5 percent of gross disposable income in the final quarter of 2013, according to data from the Bank of France last week.
Households' unemployment concerns rose further this month although monthly jobless claims appear to be stabilising, albeit at record high levels.
President Francois Hollande's Socialist government hopes to bring unemployment down with a plan to phase out 30 billion euros ($41.5 billion) in payroll tax on companies over the next three years in exchange for committing to hiring targets.
Economists polled by Reuters expect March consumer spending data due on Wednesday to show an increase of 0.3 percent over the previous month.
(Reporting by Leigh Thomas; Editing by James Regan)