French consumer confidence surpassed expectations in July, recovering some of the ground lost since the outbreak of the war in Iran. According to data released by the French National Institute of Statistics and Economics on Tuesday, the French Family Confidence Index rose from 84 to 86 as people's optimism about personal financial conditions and living standards grew. This is the highest level since March, and is 1 point higher than the median estimate obtained by economists surveyed by Bloomberg. Despite improvements, this result is still far below the indicator's long-term average of 100. The French economy contracted at the beginning of the year, and it is expected that the second-quarter data released later this week will show that the economy will grow by only 0.2%. Consumer spending has been weak as households face pressure from accelerating inflation, and the government limits fuel subsidies to control huge budget deficits.

French consumer confidence surpassed expectations in July, recovering some of the ground lost since the outbreak of the war in Iran. According to data released by the French National Institute of Statistics and Economics on Tuesday, the French Family Confidence Index rose from 84 to 86 as people's optimism about personal financial conditions and living standards grew. This is the highest level since March, and is 1 point higher than the median estimate obtained by economists surveyed by Bloomberg. Despite improvements, this result is still far below the indicator's long-term average of 100. The French economy contracted at the beginning of the year, and it is expected that the second-quarter data released later this week will show that the economy will grow by only 0.2%. Consumer spending has been weak as households face pressure from accelerating inflation, and the government limits fuel subsidies to control huge budget deficits.