April 21 Reuters The euro zone economic recovery has unexpectedly gathered pace this month as the bloc39;s dominant services industry saw already buoyant demand rise, more than offsetting a deepening downturn in manufacturing, surveys showed.

HCOB39;s flash Composite Purchasing Managers39; Index PMI, compiled by SP Global and seen as a good gauge of overall economic health, jumped to an 11month high of 54.4 in April from March39;s 53.7, data showed on Friday.

That was well above the 50 mark separating growth from contraction and matched the highest forecast in a Reuters poll which had predicted no change from March.

The HCOB Purchasing Managers39; Indices for the euro zone show a very friendly overall picture of an economy that continues to recover, Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

However, a closer look reveals that growth is very unevenly distributed. For example, the gap between the partly booming services sector on the one hand and the weakening manufacturing sector on the other has widened further.

To meet rising demand firms increased headcount at the fastest pace since last May. The employment index bounced to 54.7 in April from 53.3.

A PMI covering the services industry soared to 56.6 this month from 55.0, confounding expectations in the Reuters poll for a decline to 54.5.

Despite high living costs in the region, demand for services improved as consumers continued to spend. The new business index rose to a oneyear high of…