ROME (Reuters) -Italy’s service sector expanded for the 11th month running in October and at the fastest pace since May 2024, a survey showed on Wednesday, raising the prospect of firmer growth in the euro zone’s third-largest economy.
The HCOB Purchasing Managers’ Index (PMI) for services climbed to 54.0 last month from 52.5 in September, moving further above the 50.0 threshold that separates growth from contraction.
A Reuters survey of 16 analysts had pointed to a reading of 53.0.
“With overall demand firming and export orders showing early signs of recovery, the outlook has brightened – even if hiring and sentiment remain restrained,” said Hamburg Commercial Bank AG economist Nils Muller.
Italy’s services sector entered the fourth quarter “on a strong footing,” he said.
The PMI’s subindex on new business inflows rose to 54.6 in October from 53.7 the previous month, posting its highest level since April 2024.
The indicator for new export orders increased to 50.5 from 48.8, above the 50 mark for the first time in 15 months.
HCOB’s sister survey for Italy’s smaller manufacturing sector, published on Monday, pointed to stagnation in October, as factory activity struggles to emerge from a long-running slump.
The composite PMI combining manufacturing and services rose significantly to 53.1 in October from 51.7 the month before, the highest reading since March 2024.
(Reporting by Antonella Cinelli, editing by Gavin Jones and Hugh Lawson)
