BERLIN, Nov 23 Reuters Germany39;s downturn showed signs of easing in November with both manufacturing and services activity falling more slowly than in previous months, a preliminary survey showed on Thursday, raising hopes that a recession might be shallower than expected.

The HCOB German Flash Composite Purchasing Managers39; Index PMI, compiled by SP Global, rose to a fourmonth high of 47.1 in November from October39;s 45.9, above the 46.5 forecast by economists.

A reading below the 50 level points to a contraction in business activity.

The composite PMI index tracks the services and manufacturing sectors that together account for more than twothirds of the German economy, the euro zone39;s biggest.

A return to growth territory is a plausible prospect, potentially materialising by the first half of the upcoming year, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

Business activity in the services sector fell for the third time in the past four months but with a more modest decline compared to October with a reading of 48.7, slightly above analysts39; forecast of 48.5.

Upward pressure on wages and output prices in the services sector suggested inflation was unlikely to ease significantly in the coming months, according to the survey.

The manufacturing PMI reached a sixmonth high of 42.3 from 40.8 in October, also above analysts39; expectations, though still in contraction territory.

In manufacturing there is a silver lining as the…