Italy’s Services Sector Overview

ROME (Reuters) – Italy’s services sector grew marginally in January, with underlying demand conditions remaining weak and a decrease in employment levels, according to a survey released on Wednesday.

Key Indexes

The HCOB Global Purchasing Managers’ Index (PMI) for services dipped to 50.4 in January from 50.7 in December, staying just above the 50 threshold that indicates growth versus contraction. This result was in line with a median forecast of 50.5 from a Reuters survey of 14 analysts.

New Business and Employment

New business figures declined for the third consecutive month, recorded at 49.0 compared to 49.1 previously. Meanwhile, the employment index fell to 49.0 from 51.3 in December, marking a return to negative territory for the first time since October.

Expert Comments

“Activity in the Italian service sector remains within the growth area, but only marginally,” stated HCOB economist Jonas Feldhusen. “Underlying demand remains weak and has again worsened.”

Manufacturing Sector

A related survey for the manufacturing sector published on Monday indicated a contraction for the tenth consecutive month in January, maintaining a similar rate to the prior month.

Overall Private Sector

In summary, Italy’s private sector continued to see slight contraction, with the composite PMI at 49.7, unchanged from December and below the 50 mark for three consecutive months.