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French va va voom runs out of steam amid surge in Covid cases

French va va voom runs out of steam: Households tighten the purse strings amid surge in Covid cases

Spending slump: Consumer confidence in France has fallen due to a surge in Covid cases

French consumer confidence dipped for the second month in a row in August, as households become less optimistic about their personal finances.

Shoppers were feeling less likely to splash the cash amid a surge in Covid cases and rules requiring a health pass to enter many retail outlets, according to the official statistics agency Insee.

Business sentiment also dropped in August, in another sign that the recovery in economic activity may be slowing. 

As France faces a fourth wave, the government has started to require proof of vaccination in cafes, restaurants and shopping centres.

The survey results prompted France’s blue-chip CAC 40 index to drop 0.3 per cent.

Despite the signs the recovery has peaked, France’s central bank said this week it could raise its 2021 growth forecast of 5.75 per cent due to a stronger-than-expected first half.

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