ROME (Reuters) – The Italian services sector contracted marginally for a second month running in September, a survey showed on Wednesday, signalling ongoing weakness in the euro zone’s third largest economy.
The HCOB Purchasing Managers’ Index (PMI) for Italian services came in at 49.9 in September, virtually unchanged from 49.8 in August, and still fractionally below the 50 level that separates growth from contraction.
The result was broadly as expected, with a Reuters survey of 15 analysts pointing to a figure of 50.0.
August had marked the first contraction this year for a services sector that has held up better than manufacturing as the Italian economy has struggled since the end of the first quarter.
Italian gross domestic product shrank 0.4% in the second quarter from the first, and most analysts expect activity to remain sluggish in the near term.
The services PMI’s new business indicator climbed in September to 50.0, indicating stagnation, from 48.1 in August. The employment indicator recovered to 51.0 from an August low of 47.3.
The PMI for Italy’s smaller manufacturing sector, released on Monday, contracted in September for a sixth consecutive month.
The composite Purchasing Managers’ Index combining services and manufacturing stood at 49.2 in September, up from 48.2 in August but still pointing to contraction, Wednesday’s survey showed.
The government last week cut its growth forecast for 2023 to 0.8% from a 1.0% projection made in April, and lowered next year’s outlook to 1.2% from 1.5%.
(Reporting By Gavin Jones; editing by Christina Fincher)
