The Italian service sector contracted at a fastest pace in seven months in February, data from a survey by Markit Economics and ADACI showed Tuesday. The seasonally adjusted purchasing managers' index (PMI) for the service sector dropped to 43.6 in February from 43.9 in January, marking the steepest fall in business activity in seven months. Economists had forecast a faster decline to 43.5. An index reading below 50 indicates contraction in the sector, while one above suggests growth. Driving the slump in overall business activity, new business received by Italian service providers decreased at a sharp, and faster pace during the month. Firms lowered their workforces further in February, in line with the reduced workloads, extending the current sequence of job-shedding to 21 months. The rate of input price inflation facing service providers increased further during the month, but at the weakest pace in three months. Companies continued to reduce output prices, despite the further increase in input prices, as part of attempts to encourage sales, data showed.