The services sector grew for the fourth consecutive month in April, yet at a slower pace than March, according to the results of a survey published on Monday.

The HCOB Purchasing Managers' Index (PMI) for Italian services stood at 54.3 in April, falling from 54.6 in March, but remaining above the 50-mark dividing growth from contraction.

Furthermore, the PMI survey's new business sub-index registered 54.9 in April, a decline from 56.6 in March, whilst the employment indicator increased to 53.9 from 52.4, Reuters reports.

"The Italian service sector is thriving and flourishing," according to HCOB analyst, Tariq Kamal Chaudhry. "The outlook remains strong, reflected in a further increase in employment. Robust demand is accompanied by a sharp rise in inflation, however."

The PMI for the country's smaller manufacturing sector, published on Thursday last week, indicated contraction in April following modest growth in March.

The composite Purchasing Managers' Index, combining services and manufacturing, fell to 52.6 last month from 53.5 in March, yet remained over the 50-level for the fourth straight month.

"The outlook of Italian service providers remains optimistic. Italian services companies have ramped up hiring significantly in April, as indicated by the increased sub-index for employment. This suggests that they are optimistic about future activity," Chaudhry went on to add.

Moreover, within its annual Economic and Financial Document published in April, Italy's government reduced its growth forecast for this year, stating the economy would expand by 1%, a decline from the 1.2% growth target established in September.

Meanwhile, the European Commission, the International Monetary Fund and the Organisation for Economic Cooperation and Development all forecast Italy's economy to grow 0.7% this year.