Prior 49.4Composite PMI 50.8 vs 50.4 prior
Key findings:
Growth of Italian service sector reinstated, supported by fresh intake of new business in JuneStrength in domestic sales drives renewed growth in total new business Cost pressures soften and confidence improves
Comment:
Eleanor Dennison, Economist at S&P Global Market Intelligence:
“The service sector joined its manufacturing counterpart in signalling an expansion in June, but only just eking out growth. This was supported by a modest and renewed uptick in new business.
“Services companies again faced a steep degree of cost pressure but signalled only a moderate increase in their charges. However, rates of both cost and charge inflation did retreat in June. Although the gap between the two price gauges is still above-average, it is far smaller than May where the divergence was its greatest in almost three-and-a-half years. Signs that the heat is coming off inflation will be a welcome reprieve at service providers and consumers alike.
“This move away from the two-speed, manufacturing backed, economy seen in recent months is a much welcomed development, particularly given the uncertainty around whether stockpiling-driven support in the goods-producing sector will drop off.”
This article was written by Giuseppe Dellamotta at investinglive.com.