The Insee survey showed an increase in respondents expecting unemployment to worsen.

BBC: French consumer confidence tumbles

INSEE, France's national economics institute, predicted that the economy would rebound strongly in the fourth quarter, having not grown at all in the third.

ECONOMIST: Overview

This is despite figures from the national statistics institute, Insee, showing that industrial production rose by a higher-than-expected 0.2% in July compared with the previous month.

BBC: Italy recession deeper than first estimated

The French national statistics institute, Insee, also said that in the three months to February, industrial output was just 0.1% lower than in the previous quarter, although the manufacturing sector showed a bigger decline of 0.3%.

BBC: Spanish factory