Euro zone Nov growth pick-up unlikely to stop ECB easing again -PMI

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* Euro zone final Nov composite PMI 54.2

* PMI points to Q4 GDP growth of 0.4 pct -Markit (NasdaqGS: MRKT - news)

* Firms cut prices faster than in October

By Jonathan Cable

LONDON, Dec 3 (Reuters) - Euro zone business growth accelerated slightly in November, but with firms cutting prices again the improvement will do little to alter expectations of further monetary easing by the European Central Bank later on Thursday.

So far, the ECB has failed to push inflation anywhere near its 2 percent target ceiling and businesses across the currency bloc cut prices at a steeper rate last month than in October, Markit's Purchasing Managers' Index showed.

"Inflationary pressures remain weak," said Ben May at Oxford Economics. "It (Other OTC: ITGL - news) would be a massive communications error if the ECB turns around today and says 'actually we decided to do nothing'."

European stocks were 0.4 percent higher and the euro was hovering near a 7-1/2-year low on Thursday amid confidence of further easing by the ECB.

Inflation in the euro zone held steady at just 0.1 percent last month, data showed on Wednesday, and with the Bank promising to do what it must to boost inflation "as quickly as possible", it has all but committed to action.

Markit's composite output price index for November slipped to 49.5 from 49.6, however, falling further below the 50 mark that separates increases from contraction for a second month.

In a separate report, retail sales fell 0.1 percent in October, official data showed, confounding expectations for a 0.2 percent rise.

"Later today, the ECB will likely decide on a significant second round of monetary easing this year and this release of retail trade data will just make the case for that more compelling," said Bert Colijn at ING.

BUYING BONDS

The ECB has been buying 60 billion euros a month of mostly government bonds since March and a Reuters poll last week suggested the bank would say on Thursday that it will expand and extend its buying programme.

It is also highly likely to cut the deposit rate further into negative territory, effectively increasing the amount banks have to pay to park money overnight.

However, price-cutting in the private sector helped to generate orders. Markit's final composite PMI rose to 54.4 from October's 53.9, although that was shy of an earlier flash estimate of 54.4.

Markit said the headline index, seen as a good guide to growth, pointed to a fourth-quarter economic expansion of 0.4 percent, in line with a Reuters poll.

A new orders sub-index rose to a 4-1/2 year high of 54.8 from 53.6, also boosted by a weaker euro making the bloc's goods and services cheaper and therefore more attractive abroad.

The PMI (Other OTC: PMIR - news) for the bloc's dominant service industry nudged up to 54.2 from October's 54.1. That was also shy of the flash 54.6 but in one sign of optimism, firms increased headcount at the fastest rate in six months.

Coming in at 52.4 last month the employment sub-index was just ahead of October's 52.3.

(Editing by Gareth Jones)