BRUSSELS, Feb 5: Activity in the eurozone's service sector gathered more pace than expected in January, reaching a six-month high, according to a survey released on Monday.

The eurozone purchasing managers index (PMI) for the service sector, compiled by the research group NTC Economics, rose to 57.9 points in January from 57.2 in December.

The January data marks the 43 consecutive month of growth, which is indicated by a figure over 50.

The index beat expectations by private economists, as polled by financial news agency AFX News, for a dip to 56.7 points.

The survey found that incoming business, backlogs of work and employment levels were all buoyant in January while expectations for activity over the next year were at a 12-month high.

But inflation in the sector was also strong, with the average increase in prices charged reaching a seven-month peak.

Economists said that the sector's strength would make the European Central Bank more comfortable about gradually raising interest rates without choking off economic growth.

"The services PMI reinforces the view that eurozone interest rates are headed higher," said Global Insight economist Howard Archer.

"While we still expect the ECB to hold fire on Thursday, the bank seems ever more certain to lift rates by a further 25 basis points to 3.75 per cent in March.—AFP