Business is waiting to see what Mr Sarkozy does next

National statistics agency Insee said his election contributed to rising French business confidence in June.

The Sarkozy government has vowed to help reward people who work more than the standard 35 hour week and to make it easier for firms to hire staff.

An improving economic outlook across the eurozone has also aided confidence.

'Sarkozy bounce'

Insee reported rising order books and more optimism about future business prospects.

Analysts said French manufacturers had not benefited as much as their German counterparts from the upturn in the eurozone over the past 18 months but were now catching up.

"France seems to have lagged what has been going on in Germany and some other countries and we are finally starting to see signs now that French firms are benefiting," said Dominic White, an economist with ABN Amro.

Mr Sarkozy's pledge to legislate immediately to reduce employers' payroll taxes and to guarantee that public services will still operate during strikes has also had a positive impact.

"A positive Sarkozy confidence effect is already showing in the data," added Audrey Childe-Freeman, from investment firm CIBC.