5 January 2006, 13:26  Eurozone: Dec services PMI hits 23-mth high of 56.8 vs 55.2 Nov

Evidence emerged today of a solid improvement in the euro zone services sector as a closely-watched survey found business activity reaching a 23-month high in December. According to market sources, the euro zone purchasing managers' index for services rose to 56.8 in December from 55.2 in November, well above analysts' expectations for a much smaller improvement to just 55.5. A reading above 50 indicates that the services sector is expanding, while one below 50 indicates contraction. This survey has witnessed 30 consecutive months of expansion. A more detailed look at the data shows the business expectations sub-index rose to 66.2 from 64.8, while the outstanding business element stood at 52.6 compared with 52.1 in November. The employment component surged to 52.6, its highest level since July 2001, from 51.5, while new business rose to 55.2, the highest level since February 2004. Input prices were also higher at 60.3 against 58.6, though prices charged dropped to 50.8 from 51.3

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