In August the Italian service sector performed worse than expected, in contrast to the signs of recovery emerging from the data on manufacturing activity. L'Markit/Adaci PMI services index rose to 48,8 points from 48,7 in July (consensus at 49,4), remaining for the 27th consecutive month below the threshold of 50, which marks the boundary between expansion and contraction.
The weakness of domestic demand still weighs on the Italian tertiary sector, while manufacturing, more oriented towards exports, benefits from the global recovery. In any case, the index rose for the second consecutive month and the contraction in the services sector was the slowest since the beginning of the recession.
New orders slowed to the slowest pace since August 2011, with the relative index marking a marked increase from 45,8 to 48,2.
“Even if the services sector has yet to tune in to the expansion of the manufacturing sector, all indications from the August survey tell us that the contraction is coming to an end – commented Phil Smith, economist at Markit -. The combined data for manufacturing and services to date indicate a stagnation in GDP in the third quarter even if a robust trend in the services sector in September could improve this forecast”.
as to Spainthe service sector grew in August for the first time since June 2011, with the PMI index rising to 50,4 points, from 48,5 in July.
“This rally reinforces the view that Spain will emerge from a technical recession in the third quarter of 2013,” explains Markit economist Andrew Harker.
Spain's manufacturing sector also grew in August for the first time since April 2011, according to data released on Monday.
