The Italian services purchasing managers index rose to 39.1 from February's 37.9 level, better than the 38.2 print expected.

However, demand weakness persisted into March, thereby pushing new orders down further and for the seventh month in a row.

With less incoming work, firms continued to cut their staff at a record pace in March, according to Markit.

"March completes survey data for Q1, and points to an economy in turmoil with activity, new business and employment all falling at - or near to - survey record rates," Markit economist Andrew Self said.

"Averaged over the quarter, service sector activity fell at the fastest pace since at least 1998."

However, PMI survey respondents reported that signs of economic stabilization and improved credit markets were emerging, thus pushing up optimism to six-month highs.

Written by CEP News European Staff, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it

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