Combined with a companion survey on manufacturing, published last Thursday, the data suggests the euro zone's quarterly economic growth rate could rise to 0.7 percent in the last quarter of this year after 0.6 in the third quarter, according to NTC Research which compiles the surveys.

The RBS/NTC Services Purchasing Managers' Index covers around 2,000 companies in businesses ranging from airlines to restaurants and insurance brokers.

The survey's headline Business Activity Index rose to 55.2 in November from October's 54.9, well above the 50 mark between growth and contraction and its highest level since July 2004.

The euro zone services and manufacturing surveys have shown growth strengthening during November, despite wide anticipation of the rise in the European Central Bank key interest rate to 2.25 from 2.0 percent that took place last week.

James Carrick at ABN AMRO said the manufacturing and services surveys still showed the euro zone economy growing more slowly than when the ECB last started raising rates in 1999.

"The ECB has been far more pre-emptive than it was last time, and that tells us that it really doesn't need to raise interest rates that much," he said. "We think they're going to do another (rise) in March but we're not convinced they'll need to do another one after that."

The services survey showed most businesses remain optimistic. The index that measures companies' expectations for how they will be faring in 12 months' time rose to 64.8 from October's 64.5.

The services survey showed companies are finding it harder to keep pace with demand and are growing a little more confident about passing on rising costs to customers.

While the new business index eased slightly to 53.5 from October's 54.2, the outstanding business index rose to a 21-month high of 52.1 from 51.7.

"The prices charged component has got to be worrying for the ECB -- given the fact that fuel prices have been coming down, one would have expected that to stay roughly unchanged," said Gavin Redknap at Standard Chartered in London.

Despite civil unrest in France during November, French companies recorded much stronger employment growth than in Germany and Italy, where businesses cut marginally more jobs than they created.

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