France: Economic sentiment decreases in December
Latest reading: Economic sentiment came in at 93.5 in December, down from November’s 96.5. December’s result marked the weakest sentiment since August 2023. Consequently, the index remained below the long-term average of 100, pointing to a muted near-term outlook for the economy. Sentiment has weakened notably since early 2024, likely a result of domestic political gridlock following indecisive snap elections, plus the threat of U.S. tariffs under Donald Trump’s second presidency.
The headline print reflected worse sentiment in the industrial, construction and retail sectors, plus lower consumer confidence. In contrast, confidence in the services sector improved in December.
Regarding indicators that are not used to calculate the index, employment expectations weakened, while the economic uncertainty index improved in December.