Investing.com - Service sector activity in Italy grew at a slower pace than expected in July, one month after hitting the highest level since November 2010, data showed on Tuesday.
In a report, market research group Markit said that its Italian services purchasing managers’ index fell to a seasonally adjusted 52.8 last month from a reading of 53.9 in June. Analysts had expected the index to inch up to 54.0 in July.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
Commenting on the report, Phil Smith, economist at Markit said, “Despite slower growth in both business activity and new work the upturn retained some momentum, with a rise in outstanding business putting pressure on firms to further raise activity.”
Following the release of the data, the euro was lower against the U.S. dollar, with EUR/USD shedding 0.14% to trade at 1.3403.
Meanwhile, European stock markets were higher after the open. Italy FTSE MIB rose 0.1%, the DJ Euro Stoxx 50 tacked on 0.4%, France’s CAC 40 advanced 0.6%, London’s FTSE 100 edged up 0.45%, while Germany's DAX added 0.6%.