Latest #PMI data suggest accelerated deterioration of Italian economy at start of Q2…
April sees sharpest contraction in services activity since June 2009
- Output levels drop on accelerated decline in new business
- Job shedding strongest since July 2009
- Confidence falls to lowest in 2012 so far
The Italian service sector contracted at a marked rate during April. With new business inflows falling sharply over the month, output and employment levels both dropped to the greatest extent since the country was deep in recession midway through 2009. Cost pressures meanwhile remained strong, but prices charged were nevertheless reduced for a ninth straight month.
Signalling a faster decrease in activity levels at Italian service providers, the seasonally adjusted Markit/ADACI Business Activity Index – which is based on a single question asking respondents to report on the actual change in business activity at their companies compared to one month ago – fell from 44.3 in March to 42.3 in April – its lowest mark for almost three years. Total output across Italy’s largest sector has now decreased for 11 consecutive months.
via Markit/ADACI Italy Services PMI®