Italy’s service sector stagnates in September, PMI shows
3:50 am Thursday, October 03rd, 2024
ROME (Reuters) – Italy’s service sector growth slowed almost to stagnation in September, a survey showed on Thursday, amid a second consecutive decline in new business in the euro zone’s third-largest economy.
The HCOB Purchasing Managers’ Index for Italian services came in at 50.5 in September, down from 51.4 in August and only marginally above the 50 level that separates growth from contraction.
The reading was below a median forecast of 51.0 in a Reuters survey of 15 analysts and marked the sixth consecutive decline in the index since a peak of 54.6 registered in March.
“Stagnation in September … New business opportunities, both at the total and international level, are struggling to gain momentum in Italy’s service sector,” said HCOB economist Jonas Feldhusen.
The survey’s new business sub-index fell to 49.3 from 49.8 in August, moving further below the key 50 threshold, while the employment index edged down to 50.9 from 51.2.
A sister survey on Tuesday showed Italy’s smaller manufacturing sector contracted for a sixth month running in September.
The composite Purchasing Managers’ Index, combining services and manufacturing, declined to 49.7 from 50.8 the month before, dipping below the 50 mark to signal contraction for the first time this year.
In its multi-year fiscal plan published late last month, the Italian Treasury said gross domestic product would grow by 1% this year, in line with a previous estimate made in April.
(Reporting by Angelo Amante, editing by Gavin Jones and Toby Chopra)
