Italian service sector contracts for first time in 2024, PMI exhibits

ROME (Reuters) – Italy’s service sector exercise contracted in November for the primary time this yr, a survey confirmed on Wednesday, boding unwell for development prospects within the euro zone’s third largest financial system.

The HCOB Buying Managers’ Index for Italian companies got here in at 49.2 in November, down from 52.4 the month earlier than and under the important thing 50 stage that separates development from contraction.

The studying, hit by a marked lower in new enterprise, was under a median forecast of 51.2 in a Reuters survey of 10 analysts.

It ended a ten-month run of development that had propped up the financial system by offsetting a long-running stoop within the smaller manufacturing sector.

“Italy is about to finish the yr with weak development within the fourth quarter,” stated HCOB economist Jonas Feldhusen.

The survey’s new enterprise sub-index dropped steeply to 46.7 from a earlier 51.9 – its most pronounced decline in over two years – whereas the employment index rose barely to 50.5 from 49.9 in October.

The sister survey for the manufacturing sector issued on Monday confirmed contraction for an eighth month working in November, and on the quickest tempo this yr.

The composite Buying Managers’ Index, combining companies and manufacturing, additionally fell into contraction in November, coming in at 47.7 from 51.0 the month earlier than.

Italy’s financial system stagnated within the third quarter from the earlier three months because of a stoop in exports and investments, nationwide statistics bureau ISTAT reported this week.

ISTAT stated that if development additionally stagnates within the final three months then full-year growth will are available at simply 0.5%, half the federal government’s official forecast of 1%.