PARIS (Reuters) -French consumer confidence fell unexpectedly in May, hitting a five-month low as concerns about the economy and unemployment surged, a monthly survey from the INSEE stats agency showed on Friday.
INSEE said its household confidence index fell to 88 from 91 in April, confounding economists’ average expectation in a Reuters poll for an improvement to 93.
The survey showed that households’ concerns about unemployment reached the highest level since March 2021 in the midst of the COVID crisis.
A number of big companies ranging from steelmaker ArcelorMittal to microchip maker STMicroelectronics have announced layoff plans in recent months.
So far unemployment in France has been largely stable, rising only marginally in the first quarter to 7.4% from 7.3% in the previous three months, but unions fear the rate will creep higher as firms shed staff in the face of slower activity.
With the news replete with stories about a possible trade war with the United States, households’ concerns about the general economic situation also worsened, rising to the highest level since December, INSEE said.
Business confidence also fell in May, easing back to its lowest in three months with the more-consumer exposed service sector seeing a particularly sharp drop, INSEE said on Thursday.
(Reporting by Leigh Thomas; Editing by Tom Hogue)
