FX.co ★ Italy’s Composite PMI Slips in December

The HCOB Italy Composite PMI decreased to 50.3 in December 2025, marking a significant drop from November's two-and-a-half-year high of 53.8. This indicates the slowest rate of private sector growth in nearly a year. The growth in the services industry eased, while the manufacturing sector slipped back into contraction. Across the composite, new business saw its weakest expansion rate in three months. Employment within the private sector remained unchanged in December. However, companies managed to decrease backlogs of work, thereby enhancing their overall operational efficiency. Cost pressures across both manufacturing and services sectors lessened significantly, resulting in a composite reading beneath its long-term average. While the overall rate of price inflation did ease, it still remained high by historical measures. Looking towards the future, manufacturers expressed a notably more positive outlook compared to their counterparts in the service sector, indicating continued optimism about production prospects despite the slowdown in activity.