The indicator, which measures sentiment among small and medium-sized businesses, rose to 38 in February from 34 in January. It is based on business leaders' responses on sales, profitability, employment trends and the outlook for their company and industry. The small and medium-sized business sector, which covers companies with between 6 and 200 employees, accounts for 45 pct of total French employment. The indicator is based on a scale under which 0 equates to the historic low point reached in 1993 and 100 equates to the high reached in 2000. The sales indicator rose 4 points to 35, while the employment indicator rose 7 points to 51. The investment indicator rose 1 point to 46, after surging 17 points in January "The situation of small and medium-sized businesses seems to be in a virtuous circle," said BNP Paribas Lease Group, noting that optimism was expressed by business managers in all sectors but that the services sector is particularly well-oriented.