Italy services PMI rises, demand conditions still fragile

The HCOB Italy Services PMI rose to 50.7 in December 2024, rebounding from the slight dip in November, which was 49.2, and surpassing market expectations 50.3.

Italy services PMI rises, demand conditions still fragile

Increased workloads and new customer acquisitions drove this improvement. However, demand conditions remained somewhat unstable, with new orders declining for the second consecutive month, though only marginally. On a positive note, employment activity remained steady in Italy’s services sector, with job creation reaching its highest level since July. Service providers also made progress in reducing their backlogs. On the pricing front, input cost inflation remained high, primarily due to rising wages and energy prices, contributing to a moderate increase in output charges.

Business confidence improves amid optimism for 2025

Lastly, business confidence for the year ahead improved across the sector, driven by expectations of better economic and geopolitical conditions and optimistic growth forecasts.