PARIS–French consumer confidence dropped sharply and unexpectedly in July as households lost confidence in their financial situation and their capacity to save, statistics showed Wednesday.
Consumer confidence in the eurozone’s second largest economy fell to 104 from 108 in June, statistics agency Insee said. Economists polled by the Wall Street Journal had forecast confidence would remain steady.
The reading jumped six points in June after Emmanuel Macron won the French presidential election and a majority in the national assembly. However, Mr. Macron’s popularity has declined in recent weeks and his government has changed course on its budget plans. Plans for deeper spending cuts sparked a row with a top army chief, who resigned last week.
In July, consumers’ optimism also waned regarding their future living standards, Insee’s survey showed, while concerns about unemployment and inflation expectations rose.
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