Italian service sector expansion gains pace in Oct, PMI shows
2024.11.06 05:06
ROME (Reuters) – Italy’s service sector regained strength in October after almost stagnating in September, a survey showed on Wednesday, lifted by a jump in new domestic business.
The HCOB Purchasing Managers’ Index for Italian services came in at 52.4 last month, up from 50.5 in September, comfortably above the 50 level that separates growth from contraction.
The reading was above a median forecast of 50.5 in a Reuters survey of 12 analysts and ended a six-month slowdown in growth from a peak of 54.6 registered in March.
“The recent growth in Italy’s service sector is primarily fuelled by a rise in domestic demand,” said HCOB economist Jonas Feldhusen, noting that a subindex measuring new export business remained stuck below the 50 level for a third month running.
By contrast, the overall new business gauge rose to 51.9 from 49.3 in September. However, the employment index fell to 49.9 last month from a previous 50.9.
A sister survey on Monday (NASDAQ:) showed Italy’s smaller manufacturing sector contracted for a seventh month running in October, and at a faster pace than the month before, pointing to problems elsewhere in the economy.
National statistics bureau ISTAT said last month that Italian gross domestic product stagnated in the third quarter compared with the previous three months, missing forecasts and casting a shadow over growth prospects.
Providing a glimmer of hope, the composite Purchasing Managers’ Index, combining services and manufacturing, rose to 51.0 in October from 49.7 the month before.
“The HCOB Composite PMI offers cautious optimism as we enter the fourth quarter, as it has edged back above the growth threshold, largely driven by demand within the services sector,” Feldhusen said.
“This development underscores a distinct bifurcation within the Italian economy.”
