French consumer confidence slips in August

French consumer confidence slipped lower as the outlook for future living conditions and unemployment soured.

INSEE’s consumer confidence index dipped from a reading of 104 in July to 103 for August, as expected by economists.

A widely-followed subindex tracking whether Frenchmen judged it was a good time to carry out large purchases retreated from -1 to -3.

So too did the subindices linked to the outlook for living standards and unemployment, with declines from -10 to -8 and from 7 to 1, respectively.

Commenting on the data, Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, said: “Overall, headline sentiment is vulnerable to the looming clash between workers and Mr. Macron over labour market reforms. If history is a guide, the latter part of Q3 and Q4 could be confrontational, which will dent sentiment. For now, however, the chart shows that the headline sentiment index points to upside risks for growth in goods spending.”

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