LONDON, Dec 3 (Reuters) - A key global services and manufacturing activity index staged a record fall in November with the chances of the international economy remaining in deep recession into 2009 increasing, JP Morgan said on Wednesday.
The Global All-Industry Index, which aggregates purchasing managers' indexes across manufacturing and services around the world staged in November its biggest one-month fall in the 11-year survey history to 35.4, a record low, from 43.1.
The Services Business Activity Index, also produced by JP Morgan with research and supply management organisations, plummeted to 36.1 in November from 44.2 as all national PMI indices reported lower output.
The 50.0 mark divides growth and contraction.
"The extent of the downturn of the global economy so far in Q4 2008 is unprecedented in the 11-year history of the PMI surveys," said David Hensley a director at JP Morgan, adding it pointed to a 2 percent quarterly drop in GDP, seasonally adjusted annual rate. Dire data released earlier in the United States showed the services sector there, which represents about 80 percent of U.S. economic activity, slumped to a record low in November well below expectations.
The euro zone saw activity in its dominant service sector fall deeper into recession than initially thought, to the lowest in the survey's 10-year history, and while activity in the UK shrank at its fastest pace since the series began in 1996. The outlook for the global index was grim with new orders recording its lowest level in the survey history while staffing levels declined at a record rate.
"Indicators of demand and employment also sank to record lows, raising the chances of the global economy remaining in a deep recession through at least early 2009," Hensley said in a release.
Figures released on Monday showed global manufacturing activity contracted for the sixth consecutive month in November, falling to a record low.
However a fall in input price pressures will provide some relief to central banks which have been holding back from cutting interest rates to try and boost national economies as they face inflation significantly above targets.
The index combines survey data from the United States, Japan, Germany, France, Britain, China and Russia. (Reporting by Jonathan Cable; Editing by Ron Askew)