French consumer confidence rose in January, and industry looked forward to a slight increase in demand in the first quarter of this year as a gradual recovery takes hold in the eurozone's second largest economy.
National statistics office INSEE said on Thursday its consumer confidence index, based on a survey of some 2,000 households, came in at minus 22 in January, versus a revised minus 25 in December.
INSEE warned it had changed its method of accounting for seasonal variations but economists said signs of an upturn were there.
"Even accounting for the change to the index, consumer morale has shown a clear improvement," said Jean-Louis Mourier, economist at investment house Aurel Leven.
In its quarterly business survey, INSEE said an index on prospects for overall demand in the coming quarter, based on interviews with officials of some 4,000 companies, rose to plus seven from plus two in October.
The figures shows the percentage points balance between respondents saying things had worsened and those seeing an improvement.
"The industry survey shows a level of demand that continues to support the economy," said Mourier. "We are on the right path for a gradual recovery, assuming the euro stays around its current levels."
The reports add to a growing picture of a strengthening recovery in France. On Wednesday, a Reuters/CDAF survey showed activity in France's dominant services sector rose to a three-year high in January.
INSEE said consumers' perception of the employment outlook had become a little more favourable in January.