ROME, Oct 5 (Reuters) – Italy’s service sector grew in September at the slowest pace in three months, a survey showed on Monday, as cost pressures intensified once again, driven by turmoil in the Middle East.
• S&P Global’s Purchasing Managers’ Index (PMI) for the Italian service sector stood at 51.7 from August’s 55.2.
• September’s reading was the fourth month running above the 50 mark separating growth from contraction, though far below a forecast of 54.7 in a Reuters survey of nine analysts.
• Despite the September slowdown, the average reading for the third quarter was stronger than in the first two quarters of the year, said S&P Global economist Eleanor Dennison.
• The survey’s measure of input cost inflation in September jumped to 65.4 from 61.5 the month before, the highest level since May.
• The “prices charged” indicator accelerated to 54.8 from August’s 52.5.
• The Italian economy has held up better than many analysts expected over the first half of the year, with gross domestic product rising by 0.3% in the first quarter and 0.2% in the second.
• S&P Global’s sister survey for Italy’s smaller manufacturing sector, released last week, showed a return to growth in September after contraction the month before.
• The composite PMI, combining manufacturing and services, decelerated to 51.0 in September from 53.6 in August, posting a sixth straight month of expansion but the lowest reading since June.
(Reporting by Antonella Cinelli, editing by Gavin Jones and Toby Chopra)
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