France recorded improved households appreciation of economic situation in December with the confidence indicator increased by two points, according to data on Thursday.

The December consumer sentiment indicator stood at 86 points, on its highest level since May, but it remained below its long term average, the report released by the national statistics bureau Insee showed.

More people expressed optimism over their past and future financial balance which gained 2 points respectively compared to a month before. Their willingness to make major purchases inched up by one point.

At the end of December, French consumers were more confident of the country's economic performance with their appreciation for the future economy improved to minus 53 from minus 55 in November, so do their willingness to save.

However, they showed higher concerns over the labor market as the index rose by 5 points.

The French government targets 0.3 percent growth this year and to expand the figure to 0.8 percent in 2013, pledging to stem rising unemployment in a year's time, a though economic test to the Socialists during the new year.