French households increased their spending by 0.9 per cent in October, official figures showed today, a shot in the arm for the euro zone's second biggest economy after it stalled in the third quarter.
The rise in household spending, traditionally the main driver of growth in France, was bigger than economists had forecast.
It was the biggest rise in household spending since June, when it rose 3.2 per cent .
October consumer spending rose 2.1 per cent year-on-year, national statistics office INSEE said.
INSEE also revised September's spending figure to a fall of 0.2 per cent from a drop of 0.6 per cent previously reported.
The report offered some hope of a rise in growth in the final quarter of this year after the economy expanded just 0.1 per cent in the July-September period.
The conservative government has made efforts to boost household morale and spending to put France ahead of neighbouring Germany and Italy, where economic growth is suffering from weak demand from consumers.
Outgoing Finance Minister Mr Nicolas Sarkozy has offered tax breaks to fishermen, farmers and truckers to head off protests over rising fuel costs.
He promised that any money the government made in excess of forecast fuel tax income as a result of high oil prices would be returned to consumers, but the Finance Ministry last week announced revenues were in fact short of budget forecasts.
Mr Sarkozy also brokered a deal with supermarkets in September to cut the price of many brand-name goods. Analysts and traders say a price war has also started because one of the country's big retailers is seeking to get rid of laws limiting discounts.
However, research last week showed the French expect to spend less on Christmas gifts this year as they have little faith in the recovery of the economy. More than half those surveyed believe the economy is in recession, Deloitte & Associates showed in their survey.