April 24 (Reuters) – French consumer confidence fell sharply in April, recording its largest drop since the start of the Ukraine war in 2022, the INSEE official statistics agency said on Friday.
Economies worldwide are feeling the inflationary impact of the Iran war since attacks on energy infrastructure in the Middle East and Iran’s effective closure of the Strait of Hormuz have led to the largest oil supply disruption in years.
The consumer confidence index dropped in April to 84 points, from 89 points in March, INSEE data showed. That was far below the 88 points expected on average by 15 economists polled by Reuters.
“In April 2026, households’ views on their personal financial situation, both past and future, deteriorated significantly,” the statistics office said.
Concerns over unemployment also increased, it added, with the corresponding index gaining 7 points to remain well above its long-term average.
Households’ perception of past inflation surged. The share of consumers reporting sharp price increases over the past year jumped 30 points, the largest monthly increase in more than 40 years, INSEE said.
Private sector growth in the euro zone nearly stalled in March, the first full month since the beginning of the U.S.-Israeli war with Iran. France’s business confidence also weakened markedly, as companies cited risks to demand and inflation from the conflict.
(Reporting by Alessandro Parodi and Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak)
Comments