French consumers are cutting back on discretionary spending due to rising inflation, high energy prices, and economic anxiety ahead of next year's presidential election. According to a Cofidis survey, 60% of French people believe inflation is accelerating, while 58% have reduced non-essential spending and 54% are paying closer attention to prices. The consumer slowdown poses a risk to the economy as it struggles to gain momentum, with economists warning that rising oil prices and weak wage growth are eroding consumers' remaining spending power. Consumer spending makes up half of France's gross domestic product, and reduced spending is not only affecting businesses but also causing headaches for the finance ministry in preparing the 2027 budget.
Written by the local model on 2026-09-11,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
In Paris, French consumers are cutting back on spending due to rising inflation, high energy prices, and economic uncertainty ahead of next year's presidential election. According to restaurant owner David Zenouda, "the purchasing power is really limited", with some customers sharing meals or skipping wine at lunch. This trend is concerning for businesses that rely on consumer spending, which accounts for half of France's GDP. Consumer anxiety is also evident in surveys, including a September poll that shows people are feeling squeezed. The situation is further complicated by the need to pass a balanced 2027 budget, which could be difficult given the country's divided parliament. Economists warn that France has few options to address the issue, with one saying "there is no longer really any scope for action on the purchasing power front".
Written for “French Economic Uncertainty” on 2026-09-12,
grounded in this article and the 0 other(s) covering the same event.
Why this leaning score
The model judged this article politically coded and scored it -0.35, but none of the 1 quote(s) it offered could be found in the article text, so the score is not published.
Written under an earlier scoring contract, which gave a paragraph
rather than checkable quotes. Re-analysing this article replaces it.
Leaning score withheld for article 8144: no verified evidence · logged 2026-09-11
Anxious French consumers cut back as election and budget battles loom
PARIS, Sept 11 - A cash-strapped customer split an entrecôte steak with a companion the other day at David Zenouda's Paris restaurant while others increasingly share starters, skip wine at lunch or opt only for a main course.
asserted
others → cut → course
It's a sign of the times for businesses that depend on France's increasingly frugal consumers, squeezed by rising inflation, high energy prices and mounting economic anxiety ahead of next year's presidential election.
asserted
that → depend → election
"The purchasing power is really limited," Zenouda said.
asserted
Zenouda → purchase → ?
"The only cafe terraces that are full are those offering 4-euro ($4.66) pints of beer.
asserted
that → offer → beer
"
Making up half of France's gross domestic product, consumer spending is traditionally the motor of growth for the euro zone's second-biggest economy, and value-added tax is the single biggest source of government income.
asserted
tax → make → income
So when French consumers pull back it's not only a drag on the economy.
asserted
it → pull → economy
It's also a headache for the finance ministry, which needs the revenue to square a 2027 budget that can pass France's divided parliament — a task that toppled the last two governments.
asserted
that → need → governments
The consumer anxiety is showing up in surveys.
asserted
anxiety → show → surveys
A September poll by consumer credit firm Cofidis found 60% of French people believe inflation is accelerating while 58% said they are cutting non-essential spending and 54% are paying closer attention to prices.
asserted
% → find → prices
More than half expect their purchasing power to deteriorate further over the next year, up 10 percentage points from a year earlier.
asserted
power → expect → year
"There's war in the Middle East, we had a severe heatwave and wildfires this summer, an election is approaching and unfortunately we are refinancing a very high level of public debt.
asserted
we → be → debt
The backdrop is not very reassuring," Cofidis France marketing director Mathieu Escarpit told Reuters.
asserted
Escarpit → tell → Reuters
For economists and business leaders, such caution poses a risk to the economy as it struggles to gain momentum.
asserted
it → pose → momentum
Grocery chain Systeme U's chief, Dominique Schelcher, said last week households were in entrenchment mode heading towards the election while economist Mathieu Plane with the French Institute for Economics said rising oil prices and weak wage growth were eroding consumers' remaining spending power.
asserted
prices → say → power
"They are considering avoiding going on holiday or taking weekend breaks by car, cutting back on leisure spending, eating out, buying clothes and fuel costs," Escarpit told Reuters.
asserted
Escarpit → consider → Reuters
Clothing retailers reported weak summer sales with revenue down more than 5% from a year earlier even though the government-regulated season was extended by an extra week to give the sector a lift, according to industry group Fédération Nationale de l'Habillement.
uncertain
season → report → l'Habillement
France barely escaped a recession earlier this year, posting flat growth in the second quarter after contracting 0.2% in the previous three months and faring worse than other big European economies like Germany and Italy, data from the INSEE statistics agency showed last month.
asserted
data → escape → agency
A 0.3% rebound in consumer spending helped keep France out of recession, but a closer look shows households achieved that only by dipping into savings, which remains well above pre-COVID levels.
asserted
which → help → levels
After adjusting for inflation, households' disposable income, a key measure of purchasing power, fell 0.5% in the second quarter while their savings rate declined to 17.2% from 17.9% in the previous quarter.
asserted
rate → adjust → quarter
With no immediate relief in sight, declining purchasing power is shaping up to be a major battleground in the April 18/May 2 presidential election - just as it was in the 2024 legislative vote when the far-right National Rally (RN) won a record seat haul on a cost-of-living and anti-immigration platform.
uncertain
Rally → decline → platform
"People are already saying: 'I'm putting some money aside because I don't know what the new president's tax policies will be', and that's not good for consumer spending," Schelcher said on France Inter radio.
asserted
Schelcher → say → radio
RN candidate Marine Le Pen, who is leading in the polls, wants to cut value-added tax on energy while hard-left contender Jean-Luc Melenchon has called on companies to raise wages to avoid a consumer-led recession.
asserted
Melenchon → lead → recession
Centre-right candidates Gabriel Attal and Edouard Philippe both want to reduce the middle class tax burden by lowering payroll welfare contributions, though economists warn France has few options it can afford.
"There is no longer really any scope for action on the purchasing power front as the state doesn't have the means to support households," Plane said.
asserted
Plane → want → households
