* Eurozone services survey hits lowest in 10-year history

* Toyota to suspend production in Japan for 11 days

* China risks protest, riots as unemployment rises - report (For more on the crisis, click [nCRISIS])

By Mark Trevelyan

LONDON, Jan 6 (Reuters) - Dire economic data underlined the severity of recession in Europe on Tuesday, while Toyota Motor Corp (7203.T: Quote, Profile, Research) said it would halt output in Japan in response to falling demand.

With the global downturn hitting automakers particularly hard, Toyota, the world's biggest, said it would shut all its factories in Japan for 11 days in February and March.

And as a further indication of how the crisis that began with bad housing loans in the U.S. is affecting all areas of the world, a state-run Chinese magazine warned of the risk of a wave of social unrest.

The Markit Eurozone Purchasing Managers' Index of around 2,000 key services companies, from banks to retail stores, fell to 42.1 in December from 42.5 in November -- a new low in the survey's 10-year history and, economists said, a cue for the European Central Bank (ECB) to cut interest rates further.

"Sharply contracting new orders, backlogs of work and employment reinforce belief that the euro zone faces an extremely difficult start to 2009," said Howard Archer, economist at IHS Global Insight.