French consumer confidence fell unexpectedly in November, adding to economic headwinds as the government struggles to get a budget through parliament without being evicted from power.

The gauge of household sentiment dropped three points to 90, returning to its level in June when President Emmanuel Macron triggered prolonged political uncertainty by dissolving parliament. Economists surveyed by Bloomberg had expected the reading to be stable at 94, though the October reading was revised one point lower to 93.

Waning consumer confidence echoes the gloomy sentiment among businesses as Prime Minister Michel Barnier’s minority government prepares a budget with €60 billion of tax increases and spending cuts to rein in runaway deficits. 

Those plans are increasingly in doubt as far-right leader Marine Le Pen steps up threats to bring down the administration in a possible no-confidence vote over the budget next month. 

Statistics agency Insee’s monthly survey showed households losing confidence in their future living standards and financial situation, and their capacity to make savings. Concerns of rising unemployment also rose in November, as well as inflation expectations, the report showed on Wednesday.

  - Bloomberg