Euro zone Nov current account surplus 0.7 bln eur vs 3.1 bln in Oct UPDATE

(Updating with financial account details)
FRANKFURT (Thomson Financial) - The euro zone current account was 0.7 bln eur in surplus in November in seasonally adjusted terms, the European Central Bank said.
This follows a revised October surplus of 3.1 bln eur. The October surplus was revised up from a provisional estimate of 1.3 bln eur.
The November surplus was slightly above market expectations. Economists polled by Thomson Financial News were looking for a November surplus of 0.4 bln eur.
The current account has now been in surplus for six months in a row. Over the 12 months to November, the euro zone had a current account surplus of 25.6 bln eur, equivalent to around 0.3 pct of GDP, the ECB said.
The ECB said surpluses in goods and services trade and in the income account once again outweighed a large deficit on current transfers in November.
The goods surplus declined to 4.8 bln eur from 8.5 bln, but the services surplus widened to 3.2 bln eur from 2.7 bln.
The surplus in the income account fell to just 0.2 bln eur from 2.3 bln the month before. The income account covers investment income flows and wages paid to workers by employers based in a different economy.
Meanwhile, the deficit on current transfers eased to 7.5 bln eur from 10.4 bln. Current transfers cover transfers between governments and workers remittances.
In unadjusted terms the current account was 1.0 bln eur in surplus in November after an October surplus of 3.9 bln.
Meanwhile, in the financial account, there was a combined net inflow of 21.2 bln eur in direct and portfolio investment in November compared with a net outflow of 34.9 bln in October.
There was a marked turnaround in portfolio investment, with a net inflow of 10.2 bln eur in November following an outflow of 56.1 bln in October.
This was mainly the result of an inflow of 25.3 bln eur in debt instruments following an outflow of 49.1 bln the month before. Equity investment outflows increased to 15.1 bln eur from 7.0 bln.
Meanwhile, direct investment inflows declined to 11.0 bln eur from 21.3 bln.
Over the year to November, inflows in direct and portfolio investment totalled 145.3 bln eur. steve.whitehouse@thomson.com sw/vlb COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. MMMM