2025-11-05 08:45:00
- Prior 52.5
- Composite PMI 53.1 vs 51.7 prior
Key findings:
- Growth in new work accelerates, supported by fresh rise in exports
- Input cost inflation at four-and-a-half year low
- Job creation only fractional despite stronger rise in activity
Comment:
Commenting on the PMI data, Nils Müller, Junior Economist at Hamburg Commercial Bank, said:
“Italy’s services sector entered the fourth quarter on a strong footing, as the HCOB Italy Services PMI rose to 54.0 in
October. The acceleration in activity growth was accompanied by a robust rise in new business, fresh customer wins, and a
renewed rise in export orders. The improvement in services fed through to the broader economy, lifting the HCOB Italy
Composite PMI to 53.1, marking the strongest reading since March 2024. While manufacturing output also returned to
growth, the momentum was clearly concentrated in the service sector.
“Price dynamics in the Italian service sector were mixed. Input cost inflation eased to a four-and-a-half year low, offering
some relief to firms. However, operating expenses continued to be elevated, with higher energy, insurance and consultancy
costs cited. In response, service providers raised their charges at a faster pace, aiming to protect margins amid improved
demand conditions.
“Employment growth remained subdued, with firms adding staff only fractionally, often through temporary hires. Despite the
stronger rise in workloads, backlogs continued to fall, pointing to persistent spare capacity. Business confidence stayed
positive but was below historical norms, reflecting a cautious outlook in the face of persistent global headwinds.
“Overall, October’s PMI data highlight the resilience of the service sector, which remains the main engine of growth within
Italy’s private economy. With overall demand firming and export orders showing early signs of recovery, the outlook has
brightened – even if hiring and sentiment remain restrained.”
