The French economy has taken a hit following president Emmanuel Macron's decision to call a snap election, new figures suggest. Business confidence and private sector output both dropped in June, a survey of around 750 major companies in the country revealed on Friday. France's services sector - which includes industries such as hospitality and entertainment - also contracted by more than expected, according to the data.
Economist Norman Liebke, from Hamburg Commercial Bank, said: 'The uncertainty of the upcoming elections has French businesses stalling and fearing tougher times. According to anecdotal evidence, some panel members linked lower activity levels to the upcoming elections. 'This was also seen in new orders, especially in the service sector, which declined for the first time in three months.