FX.co ★ Italy Services Activity Rises to Near 1-Year High

The HCOB Italy Services PMI increased to 53.2 in May 2025, up from 52.9 in the prior month, outperforming market predictions of 52.3. This rise marks the sixth consecutive month of expansion and the most robust level since June 2024, indicating a resurgence in customer demand and a consistent influx of new orders. Although the growth rate of new orders declined marginally, it stayed high by historical measures, hinting at a solidifying recovery. Employment growth advanced to its fastest pace since July 2024, significantly surpassing the long-term average, which assisted companies in reducing work backlogs for the third month in a row. Concurrently, input cost inflation was elevated, driven by increased energy prices and wage pressures, leading firms to elevate their selling prices at the quickest rate in over a year. Additionally, business confidence rose to its highest point in three months, with approximately one-third (32%) of participants expecting heightened activity in the coming year.