ROME (Reuters) - Italian manufacturing activity expanded at its fastest in more than four years in May, a survey showed on Monday, fuelling hopes of a recovery in the euro zone's third-largest economy.
A sharp rise in new export orders helped propel the Markit/ADACI Purchasing Managers Index (PMI) to 54.8 from April's 53.8, its highest since April 2011 and its fourth consecutive month above the 50 mark that separates growth from contraction.
The reading was above the 53.6. projected by a Reuters poll and beat the forecasts of all 16 analysts who took part.
The sub-index measuring new orders rose to 56.7 in May from 54.8 in April, its highest level since February 2011.
Markit said firms surveyed had reported a recovery in demand and hired workers at their fastest rate for more than four years.
Italy's economy is forecast to return to modest growth in 2015 after three years of recession.