logo
Plus   Neg
Share
Email

Italy's Service Sector Downturn Eases In June

Italy's service sector continued to shrink in June but the pace of downturn eased markedly as restrictions to combat the coronavirus disease pandemic were loosened, survey data from IHS Markit showed Friday.

The services Purchasing Managers' Index advanced sharply to 46.4 in June from 28.9 in May. The score signaled a fourth consecutive reduction in service sector activity. Economists had forecast a reading of 47.0.

Incoming new business dropped further, with the reduction remaining sharp despite easing.

Amid muted demand conditions, service providers reduced staff numbers markedly. Encouragingly, activity expectations improved, but the level of positive sentiment remained subdued in the context of historical data.

The composite output index logged a reading of 47.6 in June versus 33.9 in May.
At the sector level, services remained the primary drag on output, as manufacturers recorded a return to marginal growth.

With weak demand conditions domestically and around the world, any meaningful recovery from the brutal economic blow dealt by the pandemic is likely to remain slow, Lewis Cooper, an economist at IHS Markit said.

For comments and feedback contact: editorial@rttnews.com

Economic News

What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.

Follow RTT