Stronger UK services growth bodes well for economy in Q4

* UK services PMI hits 4-month high in November

* Points to quarterly GDP growth of 0.6 pct in Q4

* Muted factories, construction put onus on services (Adds reaction, detail, graphics)

By Andy Bruce

LONDON, Dec 3 (Reuters) - Britain's economy looks likely to pick up speed towards the end of the year, propelled by services companies which are increasingly the sole driving force behind the country's upturn.

Activity in the sector - ranging from accountancy firms to hairdressers - expanded at the fastest rate in four months during November, according to Thursday's Markit (NasdaqGS: MRKT - news) /CIPS UK services purchasing managers' index (PMI).

The number is likely to catch the eye of Bank of England (BoE) policymakers who are weighing up domestic strength against risks from abroad after weaker-than-expected surveys of manufacturing and construction this week.

Sterling fell to 7-1/2-month lows against the dollar this week, dented in part by those surveys as well as growing signs that the Federal Reserve will raise U.S (Other OTC: UBGXF - news) . interest rates this month. The pound was little changed after Thursday's data.

Britain had the fastest-growing major world economy last year and is likely to be at the top of the pack again this year, although it has relied heavily on its services companies to drive growth, frustrating hopes for a more balanced recovery.

The economy looks on track to expand 0.6 percent in the fourth quarter, picking up from growth of 0.5 percent in July through September, according to data company Markit.

"After the deterioration in the manufacturing and construction sectors ... it is clear that the economic recovery remains almost entirely dependent on the services sector," Capital Economics economist Ruth Miller said.

The services PMI rose to 55.9 last month from 54.9 in October, comfortably beating the Reuters poll forecast for 55.0 and putting Britain second only to Spain in terms of service sector growth in Europe.

Euro zone business growth also accelerated in November, but the improvement will do little to alter expectations of further monetary easing by the European Central Bank later on Thursday.

Markit's UK composite PMI, which combines data from the manufacturing, services and construction surveys, held steady in November at 55.7, its highest level since July.

There were some signs in the services survey that price pressures were building, albeit from low levels. Input prices, which include wages, rose at the fastest pace in four months.

"For the BoE this is all confirmation that the pace of the economy is relatively robust and on balance is likely somewhat above trend, with a probable further tightening in the labour market ahead," UBS (NYSEArca: FBGX - news) economist David Tinsley said.

Economists polled by Reuters do not expect the BoE to raise interest rates from record low levels until the second quarter of next year.

(Editing by Louise Ireland)