Global recession eases again in June - survey

LONDON, July 6 (Reuters) - The global economy contracted at a slower pace in June, a report showed on Monday, helped by signs of near stabilisation in the United States' services sector.

The Global Total Output index, produced by JP Morgan with research and supply management organisations, rose to 48.1 in June from 44.0 in May, still below the 50.0 mark that divides growth from contraction.

The Global Services index rose to 47.4 in June from 43.2 in May, its highest level since last September.

"The global economy took a further step on the road to recovery in June," said David Hensley at JP Morgan.

"Looking forward signs that demand is also steadying, combined with a supportive inventory cycle, mean that an upturn in activity should be achieved in the third quarter."

Earlier data showed the U.S. service sector contracted at its slowest pace since September, and while still pointing to contraction in the economy the non-manufacturing ISM index was three points from stabilisation.

The pace of decline in global employment also eased in June, the employment index rising to 44.1 from 41.6, its highest level in eight months.

The global index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.

(Reporting by Nigel Davies; Editing by Victoria Main)