Service sector growth boosts Italy private sector activity in November

Italy's private sector grew at a faster pace in November than in October, driven by expanding service activity, results of a survey by S&P Global showed on Wednesday.

Hamburg Commercial Bank services purchasing managers' index rose to 55.0 points in November from 54.0 in October, remaining well above the 50-point mark that separates contraction from expansion in sector activity.

S&P Global said the qualitative responses to the survey linked the increase in business activity to the acquisition of new projects from new clients. Some of the companies responding to the survey simply cited a general improvement in demand for services.

In November, the flow of new orders increased, extending the current growth trend that has continued uninterrupted since February.

As the level of foreign orders received in November contracted again after just one month of growth, the improvement in total new order flow was primarily domestic, S&P Global said.

Looking ahead to the next 12 months, the Italian companies surveyed forecast an increase in activity levels and expect stronger growth thanks to their investments and the acquisition of new customers.

The PMI features a panel of 400 Italian service providers, with responses collected between November 12 and 25.

On Monday, S&P Global had said the Italy manufacturing PMI rose to 50.6 points from 49.9 in October.

As a result, the composite PMI - an average of services and manufacturing data - rose to 53.8 points in November from 53.1 in October, signalling an acceleration in growth in the Italian private sector.