FX.co ★ Italian Private Sector Growth Hits 3-Month High

The HCOB Italy Composite PMI inched up to 51.7 in August 2025 from 51.5 in July, marking a three-month peak and indicating ongoing expansion in the private sector. This uptick was primarily fueled by a resurgence in manufacturing, which pulled itself up to 50.4 from 49.8, counterbalancing a slower pace in the service sector, which softened to 51.5 from 52.3. Notably, new business inflows surged to their highest rate in 16 months, with services leading the charge. Manufacturing orders edged up slightly for the first time in nearly 18 months. Employment maintained steady growth, though the decrease in work backlogs hinted at excess capacity, particularly within the manufacturing sector. In terms of costs, service providers faced rising operational expenses, whereas manufacturers experienced a modest decline in input costs. Overall, cost inflation persisted sharply, even as output prices increased at their slowest rate since November 2024. Despite these dynamics, business confidence dipped to its lowest point in four months.