The Bank of France predicted a modest growth for the first quarter, following a possible contraction in the previous three months.

In its monthly business survey report, the bank said it expects gross domestic product to increase 0.1 percent in the first quarter of 2013. Last month, the bank estimated a 0.1 percent economic contraction for the fourth quarter of 2012.

The French economy expanded by a modest 0.1 percent in the third quarter, after 0.1 percent contraction in the second quarter of 2012.

The survey also showed that the business confidence index for the French industry rose to 95 in January from December's downwardly revised 94. Economists had expected the index to fall to 93. Business sentiment improved for the second straight month.

The confidence index for the services sector held steady at 90 in January, unchanged from December. Both manufacturing and services are expected to log some improvement in February.