France: Economic sentiment records worst reading since August 2023 in October
Latest reading: Economic sentiment came in at 93.6 in October, down from September’s 98.3. October’s result marked the worst reading since August 2023, and could have been influenced by political instability plus the announcement of a belt-tightening 2025 fiscal budget. Consequently, the index remained below the long-term average of 100, pointing to a muted near-term outlook for the economy.
The headline print reflected deteriorating sentiment in the industrial and construction sectors, as well as a fall in consumer confidence. In contrast, confidence in the services and retail sectors improved.
Relating to indicators that are not used to calculate the index, employment expectations weakened, while the economic uncertainty index increased in October.