ROME (Reuters) -Italy's service sector expanded for a sixth month running in May and at the fastest pace for nearly a year, a survey showed on Wednesday, offering hope for firmer growth in the euro
Italy's Service Sector Growth Accelerates in May, PMI Data Reveals
ROME (Reuters) -Italy's service sector expanded for a sixth month running in May and at the fastest pace for nearly a year, a survey showed on Wednesday, offering hope for firmer growth in the euro zone's third-largest economy.
The HCOB Purchasing Managers' Index (PMI) for services rose to 53.2 in May from 52.9 in April, beating expectations and moving further above the 50.0 threshold that separates growth from contraction.
A Reuters survey of 11 analysts had pointed to a reading of 52.0.
Hamburg Commercial Bank economist Nils Muller said the highest services PMI reading since June last year was "underpinned by resilient domestic demand and a steady inflow of new business."
The survey's new business subindex came in at 52.4, down from 52.7 in April but still clearly above the 50 threshold, while the services employment indicator rose to 52.2 from 51.2.
"While the pace of new order growth softened slightly, it remained elevated by historical standards, suggesting that the recovery is gaining traction," Muller said.
HCOB's sister survey for the manufacturing sector, published on Monday, showed contraction for a 14th straight month in May, but offered some signs of stabilisation.
The composite PMI, combining manufacturing and services, climbed to 52.5 in May from 52.1 the month before, posting the highest reading since April 2024.
Italian gross domestic product increased by 0.3% in the first quarter from the previous three months, national statistics bureau ISTAT reported last week.
The latest moderately positive signs come after Prime Minister Giorgia Meloni's government in April halved its forecast for full-year growth in 2025 to 0.6%, in the face of mounting uncertainty linked to U.S. trade policies.
(Reporting by Gavin Jones, editing by Hugh Lawson)
