Service sector contracts in Italy in July – PMI

A food delivery worker rides a bicycle near mounted police officers next to St. Peter’s Square, on the fourth day of an unprecedented lockdown across Italy imposed to slow the coronavirus outbreak, in Rome, Italy, March 13, 2020. REUTERS / Alberto Lingria

ROME, Aug 3 (Reuters) – Italy’s services sector contracted in July for the first time since January as new business fell and inflationary pressures increased, a survey showed on Wednesday.

S&P Global’s Purchasing Managers’ Index (PMI) for services fell to 48.4 in July from 51.6 in June, slipping below the 50 mark that separates growth from contraction.

The result was below the median forecast of 50.1 in a Reuters survey of 14 analysts.

The sub-index for new business in the services sector came in at 48.7 in July from 52.3 in June.

Italy’s manufacturing PMI, released on Monday, showed the sector contracted in July for the first time in more than two years amid a sharp decline in industrial output. Read more

The composite purchasing managers’ index combining services and industry stood at 47.7 in July, down from 51.3 in June, its first contraction since January 2021.

On Friday, statistics office ISTAT said Italy’s economy grew faster than expected by 1.0% in the second quarter of 2022 and 4.6% year-on-year. Read more

Reporting by Angelo Amante, editing by Hugh Lawson

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