FX.co ★ Italy Private Sector Growth Hits 13-Month High

The HCOB Composite PMI for Italy advanced to 52.5 in May 2025, up from 52.1 in April, signifying the most robust growth in over a year. This increase was fueled by expansions in both manufacturing and services sectors, with factories witnessing a return to growth after a prolonged period of stagnation. There was a modest rise in new orders as manufacturing demand hovered near stability and the services sector continued to experience growth, albeit at a slower yet positive rate. Employment saw an upturn, predominantly within the services industry, which contributed to a reduction in work backlogs, particularly in the manufacturing sector. Input costs rose, although at a decelerated rate compared to the previous month. While costs in manufacturing decreased, service businesses encountered heightened expenses. Consequently, selling prices escalated at their quickest pace in over a year, primarily driven by the services sector. Enhanced business confidence, coupled with increased optimism across both industries, suggests a more favorable economic outlook for Italy.