Italy service sector growth slows in April

ROME: Italy's services sector expanded in April for a third month running, but at a slower pace than in March, with growth in new orders also easing, a survey showed on Monday.

The IHS Markit Business Activity Index for services fell to 50.4 in April from 53.1 in March -- a marked decline, but still above the 50 level that separates growth from contraction.

The sub-index for new business in the service sector dropped to 50.8 from a previous 53.0.

IHS Markit's sister survey for the smaller manufacturing sector, published last Thursday, showed activity contracting for a seventh straight month in April, with new orders also still in retreat.

The composite Purchasing Managers' Index (PMI) for services and manufacturing fell to 49.5 in April from 51.5 in March -- its weakest reading since January, IHS Markit said.

Official data released last week showed the euro zone's third largest economy had returned to growth in the first quarter of the year, pulling clear of its third recession in a decade.

Gross domestic product rose a quarterly 0.2 percent between January and March, slightly exceeding expectations. However, economists have warned that any recovery is likely to be tepid -- at least initially.