France’s consumer confidence index fell to 86 in August from 87 in July, missing economists’ forecast of 87, according to INSEE data released Tuesday. The indicator has remained below its long-term average of 100 since the COVID-19 pandemic, signaling persistent household caution. Households’ assessment of their past financial situation improved slightly, but expectations for their future finances worsened and fewer considered it a good time to make major purchases. Existing survey details show saving intentions at a record high, while unemployment fears remained elevated. Because household spending accounts for more than half of France’s GDP, prolonged caution could weaken domestic demand and economic growth in the third quarter. The reading may also reinforce expectations for a more accommodative European Central Bank stance, including a possible rate cut at its September meeting, as eurozone growth remains sluggish and inflation eases.