The Bank of France estimated Wednesday that the eurozone's second biggest economy would stagnate in the first three months of 2012.

In January, French industrial activity "progressed very slightly according to business leaders" surveyed by the central bank, which added that a slowdown had been noted in the service sector.

Production is "quasi-stable, but below the long-term average," while industrial orders are close to their normal levels, with "a slight progression in new orders," the bank said.

Stocks have been maintained close to desired levels and prices have continued to increase slightly, it added.

In the service sector, the bank said that "forecasts are oriented towards short term stability in activity" after the January slowdown due to fewer temporary work contracts and weaker activity in the information technology industry.