Paris, May 29 (Bloomberg) -- French manufacturers' confidence probably climbed to a 10-month high in May as a global recovery boosts factory orders, analysts said. A government index based on a survey of 2,000 companies probably rose to 98 from 97 last month, according to the median forecast of 18 economists surveyed by Bloomberg News. ``The recovery is happening, thanks to exports,'' said Anne Beaudu, an economist at Credit Agricole SA. ``As for consumer spending, it has already brightened up, even though the labor market hasn't yet rebounded.'' Europe's third-largest economy expanded in the first quarter after shrinking in the final three months of last year, led by manufacturing and household spending. German business confidence rose in May for the sixth time in seven months, the Ifo institute's survey of 7,000 companies showed on Monday. PSA Peugeot Citroen and Renault SA are among European manufacturers boosting production as export orders gain. The U.S. economy -- destination for 14 percent of the region's exports -- grew 5.6 percent in the first quarter, the fastest pace in almost two years. LVMH Moet Hennessy Louis Vuitton SA, the world's biggest luxury-goods maker, said sales increased 8 percent in the first quarter, led by demand for champagne and leather handbags. In the previous quarter, sales fell 4 percent. National statistics office Insee will release the figures at 8:45 a.m. Paris time today.

Schneider Sees `Pick-up'
Henri Lachmann, chief executive officer of Schneider Electric SA, the world's largest maker of circuit breakers, said on Monday he expects sales this year to be ``close'' to those of last year, providing the ``pick-up'' seen since March continues. The Bank of France predicts gross domestic product will expand 0.5 percent in the second quarter. The French economy grew 0.4 percent in the first quarter while the German and Italian economies grew 0.2 percent. Europe needs faster growth to stem an increase in joblessness. French unemployment rose to a 17-month high in March. The number of people in Germany seeking work rose in April for the 14th month in 16. The European Commission predicts the French economy will expand 1.6 percent this year, the slowest pace in six years. To underpin economic growth, President Jacques Chirac pledged tax cuts worth 30 billion euros ($27.7 billion) over the next five years. Opinion polls show his supporters are likely to win parliamentary elections slated June 9 and 16. Chirac was re- elected president on May 5.