FX.co ★ Italy Private Sector Growth Strongest in 2-½ Years

In November, the HCOB Italy Composite PMI climbed to 53.8, up from 53.1 in October, signaling the most robust expansion of Italy's private sector since April 2023. This growth was primarily driven by the services sector, which saw an increase to 55 from 54 in October, indicating the quickest rise in output for the sector. Meanwhile, the manufacturing sector also showed a return to growth, moving to 50.6 from 49.9. The increase in new business across both sectors points to strong domestic demand and slight improvements in export orders. Employment in the private sector remained relatively stable, with reductions in manufacturing employment nearly balancing the rise in hiring within the services sector. Both sectors experienced a reduction in backlogs of work. On the pricing front, input cost inflation peaked at its highest level in eight months, and although average selling prices rose moderately, they did so at the fastest rate since July, particularly within the services sector. Lastly, business confidence was on the upswing, exceeding its historical average level.