(Bloomberg) -- France's economic growth picked up this month as its services sector strengthened.
IHS Markit's Purchasing Managers' Index rose to 52.6 in October from 50.8 a month earlier, beating economist estimates for 51.0. The reading above 50 -- the level that divides expansion from contraction -- suggests the euro area's second-biggest economy is showing some resilience.
The euro rose after the report and was up 0.22% to $1.1155 as of 9:16 a.m. Frankfurt time.
The solid increase in activity was underpinned by a broad-based expansion, according to Markit. Services rebounded and the index for manufacturing climbed to just above stagnation after shrinking in September.
Still, French private companies remained optimistic about the one-year outlook for their business, citing new product development initiatives and planned operational expansions.
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