ROME (dpa-AFX) - Italy's service sector returned to growth in June as domestic and export orders recovered from May, survey data from IHS Markit showed Wednesday.
The services Purchasing Managers' Index climbed to 50.5 in June from 50.0 in May. A score above 50 indicates expansion.
The survey showed that inflows of new orders increased in June after falling in May. Job creation in services was the fastest since August 2007.
In order to boost sales activity and keep up with competitor's price discounting efforts, selling prices declined in June. The rate of decline was the slowest in the current seven-month sequence of deflation. Similarly, input cost inflation eased to the slowest in six months.
Finally, business optimism was the highest in 14 months in June, the survey showed. The private sector logged its first expansion since March. The composite output index climbed to 50.1 in June from 49.9 in May.
However, Amritpal Virdee, an economist at IHS Markit said looking at the second quarter as a whole, the economy remains on track to post a slight fall or no-change in GDP.
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