* PMI indicates recovery broadening
* Service activity, new work expand at fastest since Aug. '07
By Brian Rohan
BERLIN, Dec 3 (Reuters) - Growth in Germany's services sector accelerated in November at its fastest clip in over three years, with signs emerging that labour market improvements are boosting growth, a survey showed on Friday.
Final figures from the purchasing managers' index (PMI) by data compiler Markit showed a headline indicator for the sector rose to 59.2, up from 56.0 the previous month, to hit its highest level since August 2007.
The reading, which was higher than an earlier flash estimate , stood above the 50 mark separating growth from contraction for a 16th month running, indicating expansion well above the data series' long-term average of 52.9.
"Sector data indicated that growth of business activity was broad-based across the six areas of the service economy monitored by the survey," Markit said in a statement.
New business generation also took off at its fastest pace since August 2007, lifting the overall performance of a sector which is playing an increasingly important role in Europe's largest economy.
"A robust expansion in incoming new work supported the latest overall rise in business activity," Markit said.
Germany has seen a swathe of positive economic data in recent months as it bounced back from recession, including steadily falling jobless rates that have raised hopes consumer spending will pick up the slack as an export-driven rally slows.
Markit's report contained anecdotal evidence backing up forecasts of a sustained boost in spending, partially spelled out in retail sales data for October which showed their biggest monthly gain since January 2008.
"A number of companies noted that improved labour market conditions had boosted consumer spending," Markit said. "Some firms suggested that the improved economic outlook had contributed to a greater willingness to spend among clients."
The data add to evidence that Germany's recovery from last year's recession is broadening out, just as global demand for its industrial products looks set to ease next year.
In November, manufacturing was humming along -- a separate PMI survey released on Wednesday showed it accelerating on strong growth in new orders to its highest level since August.
That helped lead to a rise in Markit's composite index, which combines data from both manufacturing and services -- to 59.0 in November from 56.0 in October, Friday's data showed. (Reporting by Brian Rohan; editing by Stephen Nisbet)