- Prior 49.8
- Composite PMI 49.2
- Prior 48.2
That points to just another marginal contraction in Italy’s services sector for a second month running, with overall activity also seen easing slightly towards the end of Q3. HCOB notes that:
“The service sector in Italy is stuck in neutral. In September, the HCOB PMI for services reached 49.9. However, there’s a
glimmer of hope on the horizon, as the Future Activity Index hints at the potential for growth in the months ahead.
“While the service sector is in a holding pattern, input costs are still climbing, albeit at a slower rate. Greater oil and labour
costs are exerting significant pressure on the market, according to respondents. The concerning aspect is that the ability to
pass on these increased costs to customers seems limited, as output prices rose only modestly.
“A particularly positive aspect to highlight is the labour market situation, as employment grew again in September after two
months of contraction. However, the level of outstanding business rose only slightly.
“Of concern for firms is the stagnation of new business, while the decline in new export orders continued. Although the slight
increase in the Future Activity Index is positive, it still lags behind its long-term average, which portrays a degree of
uncertainty towards the outlook. The companies surveyed are generally pinning their hopes for an increase in output on
innovation initiatives and the prospect of attracting new customers.”