French consumers cast off an eight-month patch of gloom in October, official data showed on Tuesday, just ahead of the Christmas shopping season.
However, the data also signaled that consumers were reticent about spending heavily.
The confidence of households had "stabilized" in October, and even firmed slightly, having fallen continuously for eight months, data from the INSEE statistics institute showed.
The INSEE indicator firmed to minus 14 in October from minus 15 in September. During the summer it had slumped from minus 10 in July to minus 15 in September, the month of the attacks in the United States.
INSEE reported that household expectations of living standards in the next three months, which had slumped in September, had rallied in October.
And households were slightly more optimistic about about their personal finances.
But INSEE warned that attitudes towards spending money remained negative, shifting on the index from one in September to minus one in October.
The data showed that households felt they were in a stronger position now to save and that their propensity to save had declined.
Previous pessimism about prospects for jobs had eased and people were less concerned than previously about inflation.
At Natexis Banques Populaires, analyst Martc Touati commented: "This survey is further evidence running counter to the pessimistic forecasts we have been hearing since last spring."
He argued that the attacks in the United States had not driven people to increase savings as a precaution.
But at brokers Exane, Emmanuel Ferry said: "This stabilization is merely a temporary pause." He warned that "the position of households will remain weakened by a situation which was already precarious before September 11."
Meanwhile the French finance ministry reported that the budget deficit had increased to 27.9 billion euros (183.2 billion francs, 25.05 bi8llion dollars) in September from 22.4 billion euros in the same month last year.
The figures showed a "low point" in the treasury position owing to delays in tax receipts. However the ministry said it had no reason to think that a tax-revenue shortfall, put at 3.81 billion euros in July, would be exceeded, and might even be reduced.
The ministry said that tax income directly affected by the economic climate was holding up well and that an increase of VAT sales tax "reflects a firm performance in terms of household spending" -- AFP
