Industrial production edged up 0.2 percent in March from February, when output rose 1.2 percent, official figures showed, while the trade deficit narrowed sharply.

French customs authorities said the shortfall in March came to 1.649 billion euros (2.23 billion dollars) from 2.354 billion euros in February.

Analysts attributed the improved trade picture, which emerged despite strength of the euro, to the robust health of the German economy, a critical French export market.

Thursday's data should cheer Sarkozy as he fine-tunes his economic program before officially assuming the French presidency from Jacques Chirac on May 16.

Sarkozy, a right-wing former interior and finance minister, defeated Socialist Segolene Royal on Sunday on pledges to sweep away structural constraints in the economy, which he says have condemned France to tepid growth and jobless rates that are among the highest in the eurozone.