ROME, Feb 4 (Reuters) - Italy's service sector expansion accelerated in January, a business survey showed on Wednesday, raising the prospect of firmer economic growth in the euro zone's third-largest
Italian service sector growth accelerates in January, survey shows
Overview of Italy's Service Sector Growth
ROME, Feb 4 (Reuters) - Italy's service sector expansion accelerated in January, a business survey showed on Wednesday, raising the prospect of firmer economic growth in the euro zone's third-largest economy.
The HCOB Italy Services PMI Business Activity Index rose to 52.9 in January from 51.5 in December, marking the 14th straight month above the 50.0 threshold that separates growth from contraction.
A Reuters survey of 14 analysts had pointed to a reading of 51.4.
Key Factors Driving Growth
"New client onboarding, winning public tenders and greater demand from existing customers were some of the driving factors" behind the increase in activity, the HCOB report said.
Subindex Performance
However, the survey's subindexes showed new business growth, export sales, and expectations of future activity all slowed from the month before.
The new business subindex decelerated significantly to 52.9 from December's 54.9.
Manufacturing Sector Insights
HCOB's sister survey for Italy's smaller manufacturing sector, published on Monday, showed contraction for a second straight month in January, albeit at a marginally slower pace than the month before.
The composite PMI, combining manufacturing and services, accelerated to 51.4 from 50.3, above the 50 mark for a 12th month running.
Economic Growth Statistics
The Italian economy grew by 0.3% in the fourth quarter of last year from the previous three months and was up 0.8% year-on-year, national statistics bureau ISTAT reported on Friday.
(Reporting by Antonella Cinelli; Editing by Gavin Jones and Joe Bavier)
