Italian services activity decelerates to 1-year low in October

• Services sector PMI falls to 1-year low

Italian services PMI fell to 52.1 in October down from 53.2 in September as slower gains in new work lead weaken the services sector activity.

The Italian service sector continued to expand during October, albeit at a slower rate amid reports of weaker sales gains and margin squeeze.

 “Our PMI surveys subsequently point to a two-speed Italian economy. Whilst manufacturing is benefiting from a strong upturn in external demand for capital goods, growth in the services economy which is naturally pivoted to domestic demand developments - is lagging that of industry,” Phils Smith, director at PMI wrote in the report on Monday.