FX.co ★ Italy Services Activity Growth Beats Forecast

The HCOB Italy Services PMI increased to 52.5 in September 2025, up from 51.5 in August and surpassing market expectations of 51.5, reaching its highest level since May. This growth was largely fueled by a robust rise in new orders, which climbed at the fastest rate since April 2024 due to stronger domestic demand. In contrast, export orders continued to decline as European demand remained subdued and geopolitical uncertainties persisted. Employment saw an eighth consecutive month of increase, though at its slowest rate since April. Meanwhile, work backlogs were reduced for the seventh month in a row. On the pricing front, input costs remained on an upward trajectory, albeit with a slight deceleration. Consequently, the inflation of output charges eased to its lowest point in ten months. Lastly, optimism among service companies improved marginally, buoyed by expectations for continued growth in new orders and plans to expand service offerings.