Global PMI shows expansion for second month -JP Morgan

LONDON Oct 5 (Reuters) - Global services and manufacturing activity expanded for a second consecutive month in September, with the manufacturing sector leading the way, a survey showed on Monday.

The Global Total Output index, produced by JP Morgan with research and supply management organisations, rose to 52.9 in September from 52.0 in August. The index was above the 50 mark that divides growth from contraction for the first time in 15 months in August.

The Global services index rose to 52.2 in September from 50.5 in August.

"September PMI data round off a positive Q3 for the world economy, with the outcome for global GDP growth set to be the best since the end of 2007," said David Hensley, a director at JP Morgan.

Earlier data showed the euro zone's dominant service sector returned to growth for the first time in 16 months in September while the UK saw its service sector grow at its fastest pace for two years.

Figures released in the United States showed its service sector, which represents about 80 percent of U.S. economic activity, expanded last month at a faster face than expected.

However, the global employment index dipped to 46.0 in September from 46.1 in August as firms continue to slash jobs to cut costs and stay afloat.

The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia. (Reporting by Jonathan Cable; Editing by Toby Chopra)