Propelled by a resurgent Germany, the euro zone economy showed signs of acceleration in September with a spurt in the service sector, on the heels of a surprise surge in manufacturing in both Europe and the US.
Outside the euro zone, Britain's service sector registered its weakest pace of activity in 9 months, however, in the latest of a batch of otherwise upbeat surveys of corporate purchasing managers in Europe, the United States and Asia.
Growth in the euro zone services sector beat forecasts with a reading of 54.7, a 14-month high, in the September edition of a monthly survey which earlier this week showed a surprisingly big surge in manufacturing in the US and a better upturn than expected in European manufacturing.
Europe's performance in the service sector surveys was noteworthy to the extent that the 12-nation region is forecast to grow by little more than 1 per cent in 2005 and investors are betting on a recovery that has long proven elusive.
"There is strength now appearing in all of the big four euro zone economies," said Chris Williamson, chief economist at NTC Research which compiles the European surveys of corporate purchasing managers.
"What is particularly notable this month is the further acceleration of growth in Germany which has really driven this latest expansion in September."
Germany's index of service sector activity hit a 5-year high and overtook France as the fastest-growing service sector of the "Big Three" euro zone economies.
The euro zone surveys produced encouraging but inconclusive signals on the jobs front.
"With companies taking on staff again, it suggests their confidence in the future has improved in recent months. Quarter four may well turn out to be stronger than quarter three," Mr Williamson said.
The strongest growth in employment was seen in France while job creation in Germany - albeit modest - rose to its best level since May 2001 and raised hopes the country's long-period of rationalisation has ended.