ROME (Reuters) -Italy’s service sector expanded for a ninth month running in August but at the slowest pace since January, a survey showed on Wednesday, dampening hopes of recovery for the country’s sluggish economy.
The HCOB Purchasing Managers’ Index (PMI) for services fell to 51.5 in August from 52.3 the month before, slipping closer to the 50.0 threshold that separates growth from contraction.
The subindex on new business inflows rose to 52.8 from July’s 51.4, posting its highest level since February, but this was offset by other subindexes showing slower growth in employment, prices charged and forward-looking business confidence.Â
HCOB’s sister survey for the smaller manufacturing sector, published on Monday, moved in the opposite direction, indicating a return to marginal growth after 16 straight months of contraction.
The composite PMI, combining manufacturing and services, edged up to 51.7 in August from 51.5 in July, moving further above the key 50 mark.
The euro zone’s third-largest economy contracted by 0.1% in the second quarter from the previous three months, data showed last week, after the government in April halved its 2025 growth estimate to 0.6% amid mounting uncertainty over the impact of U.S. tariffs on goods imports.
(Reporting by Gavin Jones; Editing by Hugh Lawson)
