France’s consumer confidence index increased more than expected in January, up 3 pts to 92 vs expectations of a smaller 1 pt increase to 90. The largest changes could be seen in the expected financial situation index, up 4 pts to -10, and the expected standard of living index up 11 pts to -47. Consumers reported much lower unemployment prospects (that index fell -7 pts to 47) and weaker inflation expectations that were already weak (down -10 pts to -43). The recovery suggests that French households were less anguished about the political situation to start the new year though uncertainty remains.

A Financial Times article highlighted a distinct level of mistrust among the French people that is higher than other countries in the EU. France's political landscape remains deeply unstable as Prime Minister François Bayrou leads the country's fourth government in twelve months, appointed on December 13th, 2024 after his predecessor Michel Barnier lost a no-confidence vote. This is likely to weigh on economic prospects as consumers prefer smooth policymaking to reduce uncertainty.

France’s consumer confidence index fell -3 pts to 88 in May 2025, moving further below its long-term average of 100.

• The expected financial situation index dropped -3 pts to -14, and the major purchases index fell -4 pts to -27.
• The future standard of living index declined -5 pts to -59, the lowest since April 2023.
• Unemployment fears surged, with the index up 9 pts to 61, the highest since 2015 (ex-COVID period).
• Households' current and expected saving capacity each fell -1 pt, but both remain above average.
• Perceived past inflation rebounded 8 pts, while expected future inflation declined -1 pt to -38.