Italy’s service sector growth slows in August, PMI shows
3:56 am Wednesday, September 04th, 2024
ROME (Reuters) – Italy’s services sector expanded in August but at a slower pace than the previous month, a survey showed on Wednesday, amid a decline in new business in the euro zone’s third-largest economy.
The HCOB Purchasing Managers’ Index for Italian services came in at 51.4 in August, slightly down from 51.7 in July but above the 50 level that marks growth in activity for an eighth consecutive month.
The reading was below a median forecast of 52.6 in a Reuters survey of 11 analysts.
“Italy’s services sector remains the driving force of the economy. However, it is becoming increasingly clear that the economic workhorse is losing momentum and vitality,” said HCOB economist Tariq Kamal Chaudhry.
The survey’s new business sub-index fell to 49.8 from 51.8 in July, moving below the key 50 threshold, while the employment index declined to 51.2 from 52.6 the month before.
A sister survey on Monday showed Italy’s smaller manufacturing sector contracted for a fifth month running in August.
The composite Purchasing Managers’ Index, combining services and manufacturing, rose to 50.8 from July’s 50.3, remaining above the 50 threshold for an eighth consecutive month.
National statistics bureau ISTAT said this week that Italy’s economy grew by 0.2% in the second quarter from the previous three months, confirming a preliminary estimate.
(Reporting by Angelo Amante; Editing by Christina Fincher)
