• Prior 49.9
  • Composite PMI 51.2
  • Prior 49.6

That's a modest start to the new year for Italy's services sector as it returns to growth territory with new business also increasing for the first time since last June. S&P Global notes that:

"There was a welcome return to growth for Italy's services economy at the start of the year. Against the backdrop of the mild winter and the residual effects of a post pandemic uplift in market activity, the modest rise in output, and more significantly the solid increase of new business volumes, should go some way to assuaging fears of recession. Moreover, firms continue to add to their staffing levels amid hopes that market conditions will continue to stabilise.

"That said, the underlying growth profile of the sector remains fairly weak, and worries over the strength of the recovery persist. Moreover, the spectre of inflation is still with us, and there is concern that core inflationary pressures will remain elevated for some time given survey evidence of strengthened corporate pricing power and ongoing upward wage pressures."