Latest data released by Markit - 5 October 2021
- Prior 58.0
- Composite PMI 56.6
- Prior 59.1
The reading reaffirms a further moderation in business activity in Italy, similar to across the region, even as the growth expansion remains rather robust. Rising cost pressures are a concern and will continue to pose a problem in the months ahead.
Markit notes that:
"Italy's service sector recorded another strong performance during September as business activity continued to rise sharply, although the rate of expansion eased to the slowest since May in line with a similar slowdown of inflows of new work amid a broad stagnation in new export business.
"A similar trend was seen for the private sector, where output growth was the slowest for five months but still sharp overall. Goods producers again led the overall upturn at the end of the third quarter, but also saw a slower rate of output growth than in August. Nonetheless, this represents only a slight slowdown at the end of the strongest quarter for private sector output growth activity since mid-2006.
"Inflationary pressures remain a key downside risk, with cost burdens facing Italian companies rising rapidly again as surging input costs in manufacturing continued to spill over into the services sector. All in all, however, the Italian economy remains on an expansionary footing with firms widely expecting this to continue over the coming months."
