(BRUSSELS) - Services activity in the 15 nations sharing the euro retreated faster than expected in November, a survey showed on Wednesday, increasing the chances of a big interest rate cut.

The eurozone service sector activity index, compiled by data and research group Markit, fell to 42.5 points in November from 45.8 points in October, exceeding a first estimate of 43.3 points.

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.

"This is a horrible survey across the board, showing that the eurozone service sector is being hit ever harder by the financial crisis, muted consumer spending and markedly weaker activity in key export markets," said IHS Global Insight economist Howard Archer.

"The extremely weak November service sector purchasing managers' survey exerts significant extra late pressure on the ECB to deliver a deep interest rate cut on Thursday," he said.

With recession looming and inflation falling sharply, the European Central Bank is widely expected to slash its main interest rate from 3.25 percent on Thursday with the only question being by how much.

Separately, Markit said its eurozone's purchasing managers' index (PMI) dropped to 38.9 points in November from 43.6 in October, falling more than a first estimate of 39.7 points.

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