The Bank of France added that the business sentiment indicator for the manufacturing industry rose to 102 points in December compared to 101 in November - its highest reading since May 2011.

"Business leaders expect industrial production to rise slightly in January," the Bank of France said in a statement.

The business climate indicator for the services sector dipped to 99 in December compared to 100 in November, it added.

(Reporting by Sudip Kar-Gupta; Editing by Andrew Callus)