FX.co ★ Italy Services Activity Growth Picks Up

The HCOB Italy Services PMI rose to 52.9 in April 2025, up from 52 in March, surpassing market expectations of 51.4. This reflects a strong and above-average growth in the services sector, driven by a surge in new work orders and recent customer acquisitions. Consequently, employment saw a modest uptick. Apart from a brief accumulation period in February, work backlogs have been consistently declining since October 2023, with the latest reduction rate being the fastest in eight months and surpassing the historical average. Regarding pricing, input costs and output prices continued to escalate in April, although the inflation rate for both was the mildest reported in 2025 thus far. Nonetheless, business confidence dipped to its lowest in four and a half years, falling below the average trend. Increased uncertainty and concerns about the broader economic environment have dampened firms' expectations for activity in the coming 12 months.