The Italian tertiary sector economy continued to grow in February, thanks to the support of a new strong increase in the volume of new orders.
With 51.6 points, the seasonally adjusted S&P Global PMI of Services Activities in Italy in February recorded the highest value in eight months. Up from January’s 51.2, the February index marks another period of modest expansion, as well as the second consecutive month of activity growth. However, the figure is lower than the Bloomberg consensus, equal to 52.3 points.
Paul Smith, Economist Director at S&P Global Market Intelligence, said: “The new increase in service sector activity, at an accelerated rate, further enhances the view that the Italian economy, having successfully passed the winter, it will avoid what just a few months ago seemed to be a decidedly recessionary phase. Growth has gained momentum and the demand market is showing resilience. In addition, optimism has increased. However, there remains a residue of caution on the hiring front, especially in a period of rising wages: February staffing levels increased, but at the slowest rate in a year.
The PMI Composite Production Index also improved, rising to 52.2 points from 51.2 in January (consensus 52 points). The solid growth at the aggregate level reflects the strong increase in manufacturing output and the modest increase in services activity.