French consumers’ confidence in the economy weakened further in May due to the corona crisis, following the historic decline in April. French business, on the other hand, saw a cautious improvement in sentiment. The French statistics office reported this.
The index measuring consumer confidence in France reached 93 versus 95 a month earlier. In April, that indicator dropped at a record pace due to consumer concerns about the economic damage caused by the corona virus and the mitigation measures to counter the outbreak.
The business confidence index rose to 59 from a downwardly revised 53 from April. French companies are slowly reopening as lockdown measures are relaxed. Many companies in France were previously closed. French entrepreneurs look a little less gloomy about the future.
The statistics office thinks the French economy may shrink by as much as 20 percent in the second quarter after falling 5.8 percent in the first quarter of this year. This would put the French economy in the deepest recession since the measurements began in the late 1940s.