Italy’s Economy Suffering Record Blow Amid Mass Shutdown

(Bloomberg) -- Hotels, restaurants and other services companies in Italy saw activity shrink at a record pace in March as the shutdown of the country took its toll.

IHS Markit said its monthly services index plunged 35 points to just 17.4, taking it far below the 50 level that divides expansion from contraction. New business and employment also fell the most since the series began more than 22 years ago.

It’s an “extremely challenging time for the Italian economy and, for that matter wider society, with the sheer scale of the impact on output, employment and investment likely to be felt for a long time to come,” said Lewis Cooper, an economist at IHS Markit.

Italy has been under lockdown since early March, with all non-essential economic activity shut and most movement banned. Prime Minister Giuseppe Conte has extended measures limiting mobility until April 13.

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