ROME (Reuters) - Italy's services sector grew for a third month running in March and at its fastest rate for almost a year, a survey showed on Thursday, supported by a rise in new business in the euro zone's third-largest economy.
The HCOB Purchasing Managers' Index (PMI) for Italian services came in at 54.6 in March, up from 52.2 in February and moving further above the 50 level that separates growth from contraction.
The result beat the median forecast of 53.2 in a Reuters poll of 11 analysts and was the highest reading since April 2023.
"This buoyant performance positions services as a driving force in the Italian economy, which has struggled with lacklustre growth," said HCOB analyst Tariq Kamal Chaudhry.
He called the March services data a "noteworthy surge" but said HCOB's estimates suggested Italian gross domestic product growth would still be only "slightly above zero" in the first quarter.
The PMI survey's new business subindex jumped in March to 56.6 from 53.3 in February, marking its highest level since August 2021.
The employment subindex eased to 52.4 from 52.8, while remaining clearly above the key 50 threshold.
The PMI for Italy's smaller manufacturing sector, released on Tuesday, pointed to modest growth after 11 straight months of contraction.
The composite Purchasing Managers' Index, combining services and manufacturing, stood at 53.5 in March from 51.1 in February, above the key 50 threshold for a third consecutive month.
The Italian economy expanded by 0.2% in each of the last two quarters of 2023, yielding full-year growth of 0.9%.
The Treasury will this month lower its forecast for this year's growth to around 1% from a 1.2% target set in September, sources close to the matter have told Reuters.
Most independent forecasters see 2024 growth of only around 0.7%. although recent indicators have suggested a modest economic acceleration may have begun.