French CCI Tumbles

The shine is coming off the French consumer. A measure of household confidence in the eurozone’s second largest economy fell markedly from a decade-high in July–the first decline since the height of uncertainty over its presidential election in February. Official figures from the French statistics office show the country’s consumer confidence index fell from 108 to 104–down from a 2007 high. Analysts had expected no change, Bloomberg reported. The survey reported French consumers were less upbeat about their future finances and standard of living–with the latter falling sharply by 11 points in July having gained 22 points in the previous two months. Sentiment among French businesses and households has turned rosy since the election of new President Emmanuel Macron in May. But the centrist president has suffered a dip in his popularity in recent weeks, following a high profile spat with the military and his efforts to cut back spending and implement far-reaching labor market reforms. Insee’s July survey also revealed an increase in concerns over rising unemployment in the country, while inflation expectations among consumers also leapt.