French consumer confidence index dropped further in May.

Due to the uncertainty and rise in energy prices caused by the situation in Iran, consumer confidence in France further declined in May, with a continued weakening of public sentiment. Data released by the French National Institute of Statistics and Economic Studies on Wednesday showed that the consumer confidence index in May dropped from 84 points in April to 82 points, hitting a new low since March 2023. The statistical agency stated, "People's views on their past and future financial situations have deteriorated once again." At the same time, there was a significant decrease in consumers' willingness to make large purchases. The ongoing Middle East situation continued to weigh on market sentiment in May, as the US and Iran were still unable to reach an agreement on reopening the Strait of Hormuz for navigation. The uncertain prospects of the conflict have prompted consumers to postpone spending, while the persistently high energy prices have continued to weaken purchasing power. Despite moderate price increases before the outbreak of conflict, the risk of severe inflation in the short term remains relatively limited. However, if the conflict persists in the long term, it is expected to exacerbate economic and financial instability in the country and further undermine market confidence.