France's manufacturing confidence index unexpectedly fell in June

Gate News bot reports that, according to Bloomberg, the French manufacturing confidence index unexpectedly fell in June, adding new warning signs to the French economy, which is already struggling to keep up with its European counterparts.

The industrial confidence index of the National Institute of Statistics and Economic Studies (Insee) in France fell from 97 to 96, while economists surveyed by Bloomberg had previously predicted that the index would rise by one percentage point.

Like other European countries, France is facing resistance from the trade tensions caused by U.S. tariffs, as well as the uncertainty of how the Middle East conflict may affect prices and activities. Additionally, France is also facing its own domestic challenges as its minority government attempts to cope with the increasing burden of public debt.

A new round of spending cuts and tax increases will be announced in early July, while French households have already been restraining spending, and the growth rate of business investment is also lower than in other parts of Europe.

Insee stated earlier this week that France’s economic growth is expected to slow to 0.6% this year, while the Eurozone’s economic growth is expected to accelerate to 1.3%.