French consumer confidence fell to a record low in January, according to official data released today.
Worries about rising food and energy costs and the turmoil in financial markets led to consumer morale dropping to -34 in January, the lowest point since the series began in January 1987 and far worse than analyst expectations of a reading of -30.
"These numbers are really bad," said Dominique Barbet, economist at BNP Paribas. "It means weak growth for the first quarter. Consumption has been the motor of growth for a long time."
Economic worries are thought to be behind a drop in popularity for President Nicolas Sarkozy.
The data was compiled before the announcement of the huge trading scandal at France's second largest listed bank Société Générale on January 24th.
