There was further evidence of improvement in the euro zone services sector as a closely-watched survey found business activity reaching a 16-month high in November, sources said. According to market sources, the euro zone purchasing managers' index for services rose to 55.2 in November from 54.9 in October. This was the highest reading since July 2004 and came very slightly above the consensus forecast of economists polled by AFX News for a reading of 55.1. A reading above 50 indicates that the services sector is expanding, while one below 50 indicates contraction. This survey has witnessed 29 consecutive months of expansion. A more detailed look at the data shows the business expectations sub-index rose to 64.8, its highest level since March, from 64.5 in October, while the outstanding business element rose to 52.1, its highest level since February 2004, from 51.7. Te employment component dipped to 51.5 from 51.6, while new business also fell to 53.5 from 54.2. Input prices dropped slightly during the month to 58.6 from 59.9, but the prices charged sub-index rose to 51.3, the highest reading since February, from 50.5 in October.