ROME (Reuters) – Italy’s services sector grew for a fourth month running in March but at a modest rate slower than the month before, a survey showed on Thursday, as the euro zone’s third-largest economy continues to struggle.
The HCOB Italy Services Purchasing Managers’ Index (PMI) fell to 52.0 in March from 53.0 in February, dropping closer to the 50 mark that separates growth from contraction.
A Reuters survey of 13 analysts had pointed to 52.5.
Hamburg Commercial Bank AG economist Jonas Feldhusen said that while services activity had softened in March, the sector continues to provide some support for the economy, while manufacturing remains in crisis.
HCOB’s sister survey for the manufacturing sector published on Tuesday showed contraction for a 12th month running in March and at a steeper rate than the month before.
Thursday’s services survey showed new business inflows lost momentum in March after accelerating sharply in February, and the subindex on expectations of future activity dropped to its lowest reading since October 2023.
The composite PMI combining services and manufacturing fell to 50.5 in March from 51.9 in February, pointing to marginal expansion.
The Italian economy eked out growth of 0.1% in the fourth quarter of last year from the previous three months, after stagnating in the third quarter.
Analysts expect no significant acceleration in the near term.
(Reporting by Gavin Jones, editing by Hugh Lawson)
