LONDON, Jan 5 - Economists expect a major euro zone survey to show the services sector grew a little faster in December as global economic recovery took hold. A poll of 20 economists gave a mid-range forecast for the Eurozone Business Activity Index to rise to 57.8 in December from 57.5 in November, well above the 50 line that divides growth from contraction. Forecasts for the services index ranged from 56.3 to 60.0. The index will be released at 0900 GMT on Tuesday. It is compiled from a survey of more than 2,000 companies in Germany, France, Ireland, Italy and Spain. These countries account for 83 percent of euro zone private sector services output. The companion survey for euro zone manufacturing was released on Friday. The Eurozone Manufacturing Purchasing Managers' Index rose in December to 52.4, its highest level since January 2001, from 52.2 in November.
In the services survey, companies are asked whether the following aspects of their businesses are up, the same or down compared with one month earlier: overall business activity, new business, outstanding business, employment levels, input prices, and prices charged to customers. Respondents are also asked whether they expect their overall business activity to be up, the same or down in 12 months' time. The services indices are compiled in the same way as in the manufacturing PMI survey. However, unlike the overall manufacturing PMI, the headline Business Activity Index for the services sector is not a composite calculated from the other indices. Its level merely reflects answers to a specific question in the survey.//