Services activity in the euro zone retreated faster than expected in November, increasing the chances of a big interest rate cut.
The euro zone's service sector activity index, compiled by data and research group Markit, fell to 42.5 points in November from 45.8 points in October.
Markit said that the slump, marking the sixth consecutive month of decline, brought the index to the lowest level in the survey's 10 and a half year history.
Analysts said the survey showed that the euro zone service sector is being hit ever harder by the financial crisis, muted consumer spending and markedly weaker activity in key export markets.
They added that the extremely weak November service sector purchasing managers' survey exerts significant extra late pressure on the ECB to deliver a deep interest rate cut tomorrow.
With recession looming and inflation falling sharply, the European Central Bank is widely expected to slash its main interest rate from 3.25% tomorrow with the only question being by how much.
