French consumer confidence worsened in December as shoppers worried about the future in a sign that the April presidential election has added to uncertainty about the economic outlook in the months ahead.
Analysts suggested the intensification of election campaigning had highlighted economic weak spots and that the absence of a clear leader between the two main candidates may have dampened morale, bad news for an economy driven by consumer spending.
The index of consumer morale slid to minus 26 in December from minus 25 in November, national statistics office INSEE said today. That was the lowest since minus 28 in June and worse than expectations for a reading of minus 25.
"The drop in confidence could be a result of worries highlighted by the current electoral debate," said Olivier Gasnier, economist at Societe Generale.
Consumer spending was the key support of the growth in 2006. But the economy stagnated in the third quarter of the year, dragged down by a sharp fall in exports as companies lost out to foreign competition.
The government is hoping shoppers gave the economy a final push to pull it out of the doldrums in the last quarter of 2006.
Shoppers splashed out on household goods and clothes in November, according to data on consumer spending. But the latest confidence figures suggest shoppers may have kept their wallets shut in December and will do so in the months ahead.
The outlook for living standards dropped to minus 59 from minus 57 and the index of whether it is a good time to spend fell to minus 17 from minus 15.