Latest data released by Markit - 3 July 2020
- Prior 28.9
- Composite PMI 47.6 vs 46.9 expected
- Prior 33.9
A modest rebound in business activity in the month of June but once again, the services reading only tells us that firms are reporting better conditions in June relative to May. It doesn't tell us much about the overall situation relative to pre-virus levels.
Markit notes that:
"The Italian services economy saw a notably softer contraction in business activity in June as more parts of the economy reopened as a result of looser lockdown restrictions. Activity still declined on the month, however, with new business falling again and the rate of decline remaining sharp, despite easing. Subsequently, firms made further marked job cuts, with panellists frequently mentioning redundancies and lay-offs.
"The goods producing sector saw a similar picture, with the downturn easing from May amid the first increase in factory production for nearly two years. As a result, the private sector as a whole recorded a substantially softer contraction in output, but a drop, nonetheless.
"With weak demand conditions domestically and around the world, any meaningful recovery from the brutal economic blow dealt by the pandemic is likely to remain slow."