Italian Services Sector Activity Contracts In July

(RTTNews) - The Italian service sector slipped back into contraction in July, data from Markit Economics showed Wednesday.

The headline seasonally adjusted Markit/ADACI Purchasing Managers' Index for services dropped to 49.6 in July from 51.5 in June. A reading below 50 indicates contraction in the sector. The expected reading was 51.4.

"The Italian service sector recovery took a step backwards during July, as panellists reported a contraction in activity for the first time since last November," said Andrew Self, economist at Markit and author of the Italy Services PMI.
The survey found that a weakening flow of new orders took its toll on the sector. Firms operating in the sector also showed a second successive depletion of backlogs of work and ongoing job losses. Despite weak demand, and falling activity levels, firms remain positive regarding the twelve month outlook.