French consumer confidence rose more than anticipated in July, recovering some of the ground lost following the outbreak of the Iran conflict. Data released on Tuesday by the National Institute of Statistics and Economic Studies (Insee) shows that the household confidence index for France climbed from 84 to 86, as public optimism regarding personal finances and living standards increased. This marks the highest level since March and is one point above the median estimate from surveyed economists.

Despite this improvement, the result remains significantly below the indicator's long-term average of 100. The French economy contracted at the start of the year, and data for the second quarter, expected later this week, is projected to show only 0.2% growth. Consumer spending has been weak, pressured by accelerating inflation for households and the government's restriction of fuel subsidies in an effort to control a substantial budget deficit.