French consumer confidence unexpectedly dropped in November, signaling growing economic challenges as the government grapples with political instability and budgetary pressures.
The key measure of household sentiment fell three points to 90, reaching its lowest level since June, when President Emmanuel Macron’s decision to dissolve parliament sparked prolonged political uncertainty. Economists had predicted the index would remain stable at 94, though the previous month’s reading was revised down to 93.
The decline in consumer confidence reflects a broader pessimism felt by businesses, as Prime Minister Michel Barnier’s minority government struggles to pass a budget that includes €60 billion ($63 billion) in tax hikes and spending cuts aimed at curbing rising deficits.
According to the latest data from the statistics agency Insee, households expressed growing concerns about their future financial situation, living standards, and ability to save. Worries about rising unemployment and inflation expectations also increased in November, highlighting the mounting economic anxiety.
