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French services PMI accelerates more than expected in September

PARIS (Reuters) - French services activity accelerated in September more than previously thought, a survey

showed on Monday, in a sign that the euro zone's second-biggest economy finished the third quarter on a firm footing.

Data compiler Markit said its purchasing managers index for French services rose in September to 51.9 from 50.6 in August, better than a preliminary reading of 51.2.

Boosted by an improvement in the flow of new orders, the index rose further above the 50-point threshold dividing expansions in activity from contractions.

However, the survey also indicated that companies reduced staff last month at the fastest pace since last November while business expectations were at their lowest since December.

Markit's overall composite PMI index, which includes the services and manufacturing sectors, rose to 51.9 from 50.2 in August, better than the 51.4 originally reported.

"Over the third quarter as a whole, composite PMI data are consistent with a modest expansion of GDP, following stagnation in the second quarter," Markit senior economist Jack Kennedy said.

The INSEE official statistics office forecast on Thursday that the economy grew 0.2 percent in the third quarter, boosted by stronger consumer spending and business investment.

(Reporting by Leigh Thomas; Editing by Hugh Lawson)