Growth in Italy's services sector continued in March for the third straight month and the fastest pace in nearly a year, as per the results of a survey out on Thursday, bolstered by an increase in new business in the country.

The HCOB Purchasing Managers' Index (PMI) for Italy's services sector stood at 54.6 in March, a rise from 52.2 in February, and moving further over the 50-level that divides growth from contraction.

This latest result exceeded the average forecast of 53.2 in a Reuters survey of 11 analysts and marked the highest reading since April last year.

"This buoyant performance positions services as a driving force in the Italian economy, which has struggled with lacklustre growth," according to HCOB analyst, Tariq Kamal Chaudhry.

He referred to the March services data as a "noteworthy surge," but went on to add that HCOB's estimates indicated Italy's GDP would still just be only "slightly above zero" during the first quarter.

Furthermore, the PMI survey's new business subindex rose in March to 56.6 from 53.3 the month before, signalling its highest level since August 2021, Reuters reports.

Whereas the employment subindex edged down to 52.4 from 52.8, yet remained above the 50-level indicating growth.

Additionally, the PMI for the country's manufacturing sector published on Tuesday showed modest growth following 11 consecutive months of contraction.

Moreover, the composite Purchasing Managers' Index, combining services and manufacturing, registered a reading last month of 53.5, up from 51.1 in February, and over the 50-mark for the third straight month.

Italy's economy grew by 0.2% in both Q3 and Q4 last year, to yield full-year growth of 0.9%.

During April the Treasury will reduce its forecast for growth in 2024 to around 1% from a 1.2% target established last September, sources with knowledge of the matter told Reuters.

Many independent forecasters anticipate a growth rate of approximately 0.7% for this year. However, recent indicators hint at the possibility of a slight economic upturn gaining momentum.