Italy service sector returns to modest growth in August – PMI

ROME (Reuters) – Italy’s service sector grew barely in August after contracting the month earlier than as inflationary pressures eased considerably, a survey confirmed on Monday.

S&P International’s Buying Managers’ Index (PMI) for companies rose to 50.5 in August from 48.4 in July, climbing again above the 50 mark that separates progress from contraction.

The consequence was above the median forecast of 48.2 in a Reuters survey of eight analysts and should assist allay fears of a recession over the second half of this yr within the euro zone’s third-largest financial system.

The sub-indexes for each enter costs and costs charged by service suppliers declined in contrast with the month earlier than.

New enterprise was broadly secure, after shrinking in July for the primary time since January.

The PMI for Italy’s smaller manufacturing sector, launched on Thursday, confirmed contraction for a second month working in August as companies reported shrinking demand and declining manufacturing facility manufacturing.

The composite Buying Managers’ Index combining companies and manufacturing stood at 49.6 In August, up from 47.7 in July however nonetheless pointing to very modest contraction.

Italy’s financial system expanded by a powerful 1.1% within the second quarter from the earlier three months, information confirmed on Thursday, however analysts count on a pointy slowdown over the remainder of the yr as companies and households wrestle with hovering vitality prices.

(Reporting by Gavin Jones, enhancing by Hugh Lawson)