Italy's service sector grows in March at fastest rate since Nov 2021 - PMI

ROME, April 5 (Reuters) - Italy's services sector activity grew for a third month running in March and at the fastest rate for 16 months as cost pressures eased and new business accelerated, a business survey showed on Wednesday. S&P Global's Purchasing Managers' Index (PMI) for Italian services jumped in March to 55.7 from 51.6 the month before, climbing further above the 50 level that separates growth from contraction and marking the highest reading since November 2021. The result easily beat the median forecast of 53.2 in a Reuters survey of 16 analysts and will bolster hopes that the euro zone's third-largest economy is emerging from a slump at the end of last year. "March's data pointed to another month of recovery in the Italian service sector, and with both activity and new business rising at marked rates the outlook has brightened noticeably heading into the spring months," said S&P Global economist Paul Smith. The survey's new business sub-index for the sector rose to 56.2 from 53.1, while the indicator of input prices declined to 61.5 from 66.0, posting the lowest reading for 18 months. The PMI for Italy's smaller manufacturing sector, released on Monday, showed only slight expansion and a slowdown in growth compared with the month before. The composite Purchasing Managers' Index combining services and manufacturing stood at 55.2 in March, up sharply from 52.2 in February and the strongest reading since November 2021. Italian Economy Minister Giancarlo Giorgetti said in March the outlook had brightened since a 0.1% quarterly fall in gross domestic product at the end of 2022, and the country was likely to avoid a second quarter of contraction at the start of this year.
(Reporting by Gavin Jones; Editing by Hugh Lawson)