Services firms across the eurozone and the UK are in upbeat mood

Surveys of service providers across the eurozone and the UK, including hotels and travel firms, point to hopes for stronger jobs growth in 2006.

The data follows similar upbeat eurozone manufacturing surveys.

Meanwhile, a separate Japanese report indicated that business confidence among manufacturers had also risen.

'Europe strengthens'

The eurozone service sector purchasing managers' index rose to 56.8 in December, from 55.2 in November. A figure above 50 denotes expansion, and December's figure was stronger than had been expected.

The UK Chartered Institute of Purchasing and Supply's service sector index rose to 57.9 during the same month, up from 55.8 in November.

Meanwhile, the latest Japanese Tankan survey of major companies indicated that manufacturers' business confidence also rose in December, while non-manufacturing confidence remained steady.

"As Europe strengthens we expect that to offset somewhat weaker growth in the US, so the global picture should remain fairly positive, at least for this year," said Elwin de Groot of Amsterdam's Fortis Bank.

A separate US survey of non-manufacturing companies is due to be published by the Institute for Supply Management at 1500 GMT.