French business and consumer confidence slumped worse than expected in September, prompting renewed calls today for decisive political action to bolster economic prospects.

The INSEE statistics office's index of sentiment in France's manufacturing sector plunged in September to 99 points, from 105 in the last reading in July, and below economists' average expectations of 102.

A separate household confidence survey from INSEE showed the gloom the office's consumer sentiment indicator fell in September to 80 from 82 in August. Economists had forecast a recovery to 84.

"We are on the brink of a downturn if there aren't any clear political decisions at the European and even G20 level," Laurence Parisot, head of the French employers association MEDEF, told RMC radio.

Reuters