Investing.com - Service sector activity in Italy contracted at the slowest pace in three months in January, easing concerns over the economic outlook of the euro zone’s third-largest economy, data showed on Wednesday.
In a report, market research group Markit said that its Italian services purchasing managers’ index rose to a seasonally adjusted 49.4 last month from a reading of 47.9 in December. Analysts had expected the index to inch up to 48.6 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, “Although activity fell in January, an easing of the rate of decline as well as a slight rise in new work are encouraging signs that the sector is at least stabilizing and now less of a drag on overall economic performance.”
Following the release of the data, the euro was little changed against the U.S. dollar, with EUR/USD easing up 0.02% to trade at 1.3520.
Meanwhile, European stock markets were higher after the open. Italy FTSE MIB 40 rose 0.5%, the EURO STOXX 50 added 0.15%, France’s CAC 40 gained 0.1%, London’s FTSE 100 edged up 0.3%, while Germany's DAX was flat.