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UK economy lags further behind resurgent euro zone

* UK service sector slowed growth in November -PMI

* Rising price pressures for companies -PMI

* Stretched consumers paying more for food -BRC (Shanghai: 600466.SS - news)

* Car (HKSE: 0699-OL.HK - news) sales fall for eighth month -SMMT

(Adds economists, car sales figures)

By William Schomberg

LONDON, Dec (Shanghai: 600875.SS - news) 5 (Reuters) - Britain's economy is ending 2017

lagging the euro zone's strong recovery as the effects of last

year's Brexit vote weigh on shoppers and on businesses,

according to a range of data released on Tuesday.

The dominant services sector lost some momentum in November

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while prices charged by companies rose at their fastest pace in

nearly 10 years, potentially adding to the country's inflation

problem, a closely watched survey showed.

Another report showed shoppers spent more of their budgets

on the rising cost of food, while car sales fell for the eighth

month in a row in November.

Britain's economy withstood the initial shock of the Brexit

vote in 2016 but has slowed sharply this year as the pound's

plunge following the referendum pushed up inflation and hit

households at a time when wages are growing only sluggishly.

Companies have meanwhile slowed investment as they wait to

see what leaving the European Union means for them, potentially

adding to Britain's weak productivity growth -- another drag on

the economy.

Prime Minister Theresa May failed to clinch a deal on Monday

to open talks on post-Brexit free trade with the European Union

after a tentative deal with Dublin to keep EU rules in Northern

Ireland (Other OTC: IRLD - news) angered her political allies in Belfast.

The monthly IHS Markit (Stuttgart: A1139A - news) /CIPS services Purchasing Managers'

Index (PMI), covering businesses from hotels to hairdressers,

fell to 53.8 in November from to 55.6 in October, at the low end

of most forecasts from economists polled by Reuters.

Taken along with a pickup for the smaller manufacturing and

construction sectors, November's PMIs suggested the economy was

likely to see robust quarterly growth of about 0.45 percent in

late 2017, IHS Markit said -- faster than earlier in the year.

But businesses were downbeat about the prospects for the

economy and the composite PMI of British services plus

manufacturing fell to 54.9, a long way short of the euro zone's

57.5, its highest since April 2011.

"The euro zone is going great guns at the moment and it will

almost certainly outpace the UK this year and next," Investec

economist Philip Shaw said.

Chris Williamson, an economist with IHS Markit, said the big

news in the services survey was the jump in prices charged by

companies. They hit their highest level since February 2008, and

the second-highest since the survey began in 1996.

That is likely to be a worrying sign for the Bank of England

which has said inflation has probably already peaked and has

signalled only a gradual rise in interest rates after it raised

borrowing costs for the first time in a decade last month.

"Rising oil prices were again to blame in November, with

firms also reporting the need to pass higher costs of a wide

variety of other inputs on to customers as a result of the weak

pound having driven up import prices," Williamson said.

"As such, the survey data suggest that inflationary

pressures have yet to peak."

(Graphics by Andy Bruce; Writing by William Schomberg; Editing

by Catherine Evans)