- Prior 54.6
- Composite PMI 52.6
- Prior 53.5
Italy's services sector stays in expansion although there is just a slight easing in activity and new business on the month. Stronger demand conditions is helping in that regard with jobs growth also quickening in April. However, price pressures were stronger as well with input price inflation rising to its highest in a year. HCOB notes that:
“The Italian service sector is thriving and flourishing. In April, the HCOB PMI continued to signal robust growth for the service sector for yet another month, with an index value of 54.3. The outlook remains strong, reflected in a further increase in employment. Robust demand is accompanied by a sharp rise in inflation, however.
“Service providers are grappling with higher wages and energy prices. The ECB will likely pay close attention to the resurgence in the sub-index of input costs for Italian service providers, especially due to the role of higher wage pressures. Although costs are still far from the peak of inflation seen in March 2022 during the energy crisis following the Russia-Ukraine war, concerns about cost resurgence persist.
“The outlook of Italian service providers remains optimistic. Italian services companies have ramped up hiring significantly in April, as indicated by the increased sub-index for employment. This suggests that they are optimistic about future activity. There is good reason for this optimism, as both total (albeit slightly softer than last month) and international orders continue to grow. Confident demand forecasts, expected customer introductions, and new projects were cited by companies as reasons for their overall optimism.”
