Latest data released by Markit - 3 March 2021
- Prior 44.7
- Composite PMI 51.4 vs 49.2 expected
- Prior 47.2
That's a decent improvement in Italian services activity as it declines at its slowest rate since September last year. There was a broad stabilisation in order book volume last month and that contributed to the jump in the readings above.
Much like elsewhere around the region, input prices are increasing and that is a bit of a concern but optimism is also growing as the vaccine rollout kicks off in Europe.
Markit notes that:
"The downturn in the Italian service sector continued to ease during February. Business activity declined at the slowest pace since last September, while new business was broadly stable on the month, amid higher sales in some sectors, linked to looser lockdown restrictions.
"Moreover, service providers recorded the strongest level of confidence regarding the year-ahead outlook for activity since May 2011. Hopes of the release of pent-up demand amid easing COVID-19 measures and the vaccine rollout buoyed optimism.
"The slower contraction in services, coupled with a robust manufacturing performance pulled private sector output back to growth in February, with the upturn the second-quickest for nearly two years. Nonetheless, the weak performance of the service sector remains a concern, as should the further building of cost pressures. That said, the latest data are welcome news and point to a fresh recovery of the Italian economy and once lockdown measures are loosened, we should see strong growth as lost ground begins to be recaptured."
