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2026-05-27 14:52:41
[French Consumer Confidence Index Falls to 82 in May, a New Low in More Than Three Years] (1) Affected by the uncertainty caused by the war with Iran and the continued rise in energy prices, the French consumer confidence index fell to 82 in May from 84 in April, the lowest level since March 2023. (2) The French National Institute of Statistics and Economic Studies (INSEE) said that households’ views on their past and future personal finances have deteriorated again, and their willingness to make large purchases has also dropped sharply. (3) The ongoing conflict in the Middle East continues to drag down sentiment, and an agreement between the US and Iran to reopen the Strait of Hormuz is nowhere in sight. Uncertainty has led consumers to postpone spending, and high energy prices have weakened purchasing power. (4) Although the risk of a sharp spiral of inflation in France is limited, the protracted war is expected to exacerbate economic and financial instability and further weaken confidence. The proportion of households that believe prices will accelerate in the next 12 months remains far higher than the long-term average.
