Latest data released by Markit - 3 February 2021
- Prior 39.7
- Composite PMI 47.2 vs 42.9 expected
- Prior 43.0
Italian business activity still observes a downturn but it has eased somewhat as compared to December, with business confidence notably ticking higher to start the new year.
Markit notes that:
"Italy's service sector remained mired in a downturn into 2021, although the latest contraction in services activity was much softer than those recorded in the closing months of last year. Inflows of new work also declined in January, but similarly, the rate of reduction was the slowest for four months.
"The latest data highlighted a much stronger level of business confidence, however, with firms' hopeful that now the vaccine roll out is underway, restrictions will soon be loosened, allowing for the release of pent up demand and an economic recovery.
"Nonetheless, service providers are still in the midst of a very challenging time, and as long as restrictions remain in place it is unlikely demand will be fully revived. Although data are moving in the right direction, we are still some way off any recovery."