- Prior 51.6
- Composite PMI 47.7
- Prior 51.3
Italian business activity falls into contraction territory for the first time since January as a reduction in new business and services output weighed on the overall conditions in July. Adding to that is a fall in business confidence to its weakest since November 2020. S&P Global notes that:
"July PMI data pointed to the first contraction in Italian services activity since January, as demand conditions deteriorated.
"The downturn in services coincided with a sharp drop in factory production in July, and as a result, Italian private sector output declined for the first time since January 2021.
"Demand conditions at the composite level also weighed heavily on performance, with new business inflows falling moderately amid reports of weak client demand due to heightened uncertainty and weaker consumer confidence.
"Rates of both cost and charge inflation eased further from recent peaks in July, hinting that inflationary pressures may have peaked, though the rates of increase in both cases were still marked by historical standards.
"The downbeat performance was reflected in a further moderation in business confidence in July. Downbeat expectations for activity over the next year were attributed by panellists to the murky economic outlook, war in Ukraine, inflationary pressures and political instability, with sentiment the weakest for over a yearand-a-half."
