Italy services growth accelerates but cost pressures intensify, PMI shows

Italy's Services Sector Growth Picks Up but Cost Pressures Reach New Highs

October 2023 Performance and Economic Indicators

Service Sector Growth Accelerates

ROME, Nov 4 (Reuters) - Italy's service sector growth accelerated in October, a survey showed on Wednesday, but cost pressures intensified further, driven by turmoil in the Middle East.

• S&P Global's Purchasing Managers' Index (PMI) for the Italian service sector stood at 52.0, up from September's 51.7
• October's reading was the fifth month running above the 50-point mark separating growth from contraction
• It beat a forecast of 51.5 in a Reuters survey of 11 analysts

Employment and New Business Trends

• The employment indicator stood at 50.8 from 50.5, marking the 21st straight month of job growth
• The subindex for new business rose to 53.5, above the 50 threshold for a fifth month running, from 52.8 in September

Rising Prices and Inflation

• The survey's measure of "prices charged" rose to 55.9 from 54.8, posting the highest reading since February 2023
• The input prices indicator jumped to 68.4 from 65.4 to mark the highest level since December 2022
• Italy's annual inflation rate jumped to 5.6% in October, data showed last week, while its economic growth stagnated in the third quarter

Manufacturing Sector and Composite PMI

• S&P Global's sister survey for Italy's smaller manufacturing sector, released on Monday, showed an unexpected contraction in October
• The composite PMI, combining manufacturing and services, declined slightly to 50.8 in October from 51.0 in September, pointing to a seventh straight month of expansion but marking the lowest reading since June

(Reporting by Antonella Cinelli; Editing by Gavin Jones and Hugh Lawson)