2020.08.0510:32:00UTC+00Italy's Service Sector Returns To Growth

Italy's service sector grew for the first time in five months in July as restrictions in place to curb the coronavirus disease 2019 pandemic were loosened, data from IHS Markit showed Wednesday.

The services Purchasing Managers' Index advanced to 51.6 in July from 46.4 in June. The reading was forecast to rise to 51.1. A score above 50 indicates expansion.

Order book volumes were broadly stable. But the level of outstanding business declined again.

Despite the marginal increase in activity, latest data highlighted a further drop in services sector employment.

Input prices rose for the second month running in July. But competitive pressures continued to push down selling prices.

Looking ahead, the 12-month outlook for activity remained positive for a third consecutive month in July.

At 52.5, the composite output index signaled the fastest expansion in the private sector since July 2018.

Lewis Cooper, an economist at IHS Markit said "Although the recovery may be underway, there is an abundance of ground to make up following such an extensive downturn, with ongoing downside risks stemming from a "second wave" of the pandemic and the reintroduction of lockdown measures."