French consumers are becoming more cautious with their spending as rising prices, higher energy costs, weak wage growth, and economic uncertainty affect household budgets.

A Reuters report published on September 11, 2026, found signs of growing spending restraint among French households, with businesses reporting changes in consumer behavior ahead of the 2027 presidential election and the country’s ongoing budget debate.

French Households Become More Cautious

Consumer spending is an important part of the French economy. According to Reuters, household consumption accounts for around half of France’s gross domestic product (GDP).

Recent changes in consumer behavior suggest that many households are becoming more careful about non-essential purchases.

A September survey by consumer-credit company Cofidis found that 58% of respondents said they were reducing non-essential spending, while 54% said they were paying closer attention to prices. Around 60% said they believed inflation was accelerating.

Restaurants See Changes in Consumer Behavior

Restaurants are among the businesses noticing the change.

Reuters reported examples of customers sharing dishes, skipping wine or starters, and choosing less expensive options.

These changes are particularly significant for businesses that depend on discretionary consumer spending.

The trend suggests that households are adjusting their purchasing decisions as they try to manage tighter budgets.

Rising Energy Costs Put Pressure on Budgets

Higher energy prices are another concern for French households.

Energy costs can affect both household expenses and business operating costs. Higher fuel prices can also increase transportation costs, which may eventually affect the prices of goods and services.

France’s economic outlook has been affected by higher energy costs in 2026, alongside geopolitical uncertainty and increased borrowing costs.

Purchasing Power Remains a Major Concern

Purchasing power has become an important issue for French consumers.

The Cofidis survey cited by Reuters found that more than half of respondents expected their purchasing power to deteriorate further over the following year. The share was reported to have increased by 10 percentage points compared with the previous year.

The Bank of France has also highlighted pressure on household consumption. Its September 2026 economic projections said subdued consumer spending was contributing to weaker domestic demand.

Consumer Spending and Economic Growth

Lower consumer spending can affect overall economic growth because household consumption is a major component of GDP.

The Bank of France reduced its 2026 growth forecast to 0.4%, from a previous estimate of 0.5%, citing weaker domestic demand, cautious household spending, and restrained business investment.

The French government had previously lowered its own 2026 growth forecast from 0.7% to 0.5%.

Businesses Also Face Uncertainty

Businesses are dealing with the same uncertain economic environment.

Companies must consider household demand, energy prices, financing costs, and wider economic conditions when making investment and hiring decisions.

According to the Bank of France, cautious business investment was one of the factors weighing on domestic economic activity in 2026.

The Impact on France’s Public Finances

Consumer spending is also important for government finances.

When households spend less, tax revenues linked to consumption can be affected. Reuters noted that value-added tax, or VAT, is an important source of revenue for the French government.

This creates an additional challenge as France seeks to control its budget deficit and prepare its 2027 budget.

The government has announced plans involving approximately €54 billion in savings for 2027 as it works to reduce public spending and improve the country’s fiscal position.

Political Uncertainty Adds to the Situation

Economic concerns are developing alongside political uncertainty in France.

The country is preparing for the 2027 presidential election, while the government is also negotiating its next budget in a politically divided parliament.

Reuters reported that consumers and businesses were making decisions against this broader backdrop of uncertainty.

What Could Happen Next?

The outlook for French consumers will depend on several factors, including inflation, energy prices, wage growth, employment, interest rates, and economic confidence.

The Bank of France expects growth to improve to 0.9% in 2027 and 1.2% in 2028, assuming domestic demand strengthens and economic conditions become more supportive.

However, the central bank has also warned that energy prices and geopolitical developments remain important risks to the economic outlook.

Conclusion

French households are showing greater caution with their spending as they face higher costs and an uncertain economic environment.

A September 2026 Cofidis survey cited by Reuters found that 58% of respondents were cutting non-essential spending, while more than half expected their purchasing power to weaken further.

The trend is important not only for French consumers and businesses, but also for the wider economy and public finances. With France preparing its 2027 budget, household spending and purchasing power will remain important economic indicators to watch.