Italy’s service sector growth increased unexpectedly in June at the fastest rate in twelve months, survey figures from Markit Economics showed Friday.
The headline Markit/ADACI services purchasing managers’ index rose to 53.4 in June from 52.5 in May. Economists had expected the index to fall slightly to 52.3. Any reading above 50 indicates expansion in the sector.
Business activity rose at the fastest rate for a year in June and also pointed to the second-fastest rate of growth since November 2010, behind that seen in June 2014. The latest reading signaled an acceleration in growth at the end of the second quarter.
New orders increased for the fourth straight month in June, but the rate of growth was the slowest in this sequence.
At the same time, the volume of work outstanding at service providers decreased in June. Moreover, the reduction was in line with the trend seen in ten of the past eleven months and the cut was more marked than in the prior month.
Companies raised their staffing levels for the fifth consecutive month in June, although the rate of job creation eased further from April’s peak and was the slowest since February.
On the price front, input price inflation accelerated in June reflecting increasing business costs associated with higher activity, though slower than May’s 22-month high. In contrast, service providers reduced their selling prices further in June to the fastest in three months.
Confidence among businesses about the year-ahead outlook for activity weakened in June, reaching the lowest level in 2015 so far, with expectations that activity would naturally fall after Expo 2015.
The material has been provided by InstaForex Company – www.instaforex.com