Italian services PMI rises to 35-month high of 52.9 in February

Service sector activity in Italy expanded at the fastest pace in almost three years in February, easing concerns over the economic outlook of the euro zone’s third-largest economy, data showed on Wednesday.

Italian services PMI climbs to almost 3-year high in February

In a report, market research group Markit said that its Italian services purchasing managers’ index rose to a seasonally adjusted 52.9 last month from a reading of 49.4 in January. Analysts had expected the index to inch up to 49.8 in January.

A reading above 50.0 on the index indicates industry expansion, below indicates contraction.

Commenting on the report, Phil Smith, economist at Markit said, “These figures, alongside the sister survey data that showed continued growth in manufacturing, support the notion that Italy will see back-to-back quarterly increases in GDP.”|

Following the release of the data, the euro was little changed against the U.S. dollar, with EUR/USD easing up 0.01% to trade at 1.3742.

Meanwhile, European stock markets were mixed after the open. Italy FTSE MIB 40 rose 0.5%, the EURO STOXX 50 added 0.25%, France’s CAC 40 dipped 0.1%, London’s FTSE 100 edged down 0.15%, while Germany's DAX added 0.1%.