Italy’s services sector contracted for the fifth consecutive month in December, but the pace of contraction was minimal, a survey showed on Thursday.
The HCOB Purchasing Managers’ Index (PMI) for Italy’s services sector in December was 49.8, up from 49.5 in November but just below the 50 level, which indicates growth in activity.
This was in line with the median forecast of eight analysts polled by Reuters.
HCOB said in its report: “The outlook for 2024 looks quite bleak. Both total order value and international order value are on a downward trend, and the decline in backlog business is in line with expectations.” Ta.
“The outlook is particularly clouded by domestic economic uncertainty, the global economic downturn and geopolitical tensions abroad. The beginning of the year will be a testing period for Italian service providers.”
The new business sub-index in December fell to 48.1 from 48.3 in November. However, the employment index rose slightly for the second consecutive month, reaching 51.0 in December from 50.2 in the previous month.
Italy’s small manufacturing PMI released on Tuesday was negative for the ninth month in a row, pointing to continued weakness in the euro zone’s third-largest economy.
Thursday’s survey showed the composite Purchasing Managers Index, which combines services and manufacturing, stood at 48.6 in December from 48.1 in November, the seventh consecutive month below the key benchmark 50.
Italy’s economy grew by just 0.1% in the third quarter compared to the previous three months, after contracting 0.4% in the April-June period, national statistics agency ISTAT said in a December report. did.
ISTAT also expects sales to be weak in the fourth quarter. (Reporting by Crispian Ballmer; Editing by Hugh Lawson)