Italy's private sector activity remained essentially unchanged in January 2025, with the Composite PMI holding steady at 49.7, indicating a slight contraction.
Italy PMI flat, signaling slight contraction
While manufacturing's decline eased somewhat (PMI at 46.3), growth in the service sector slowed (PMI at 50.4). New orders decreased moderately, at a slightly faster pace than the previous month, leading to job losses across both sectors. Despite these cuts, spare capacity persisted, and outstanding business continued to decline at a solid rate. Backlogs fell sharply in manufacturing and more strongly in both sectors compared to the end of 2024. Input costs rose sharply, reaching an eight-month high, impacting both manufacturing and services.
Italy: price cuts in manufacturing, hikes in services
Pricing trends diverged, with manufacturers offering steeper discounts while service providers raised prices more aggressively. Overall selling price inflation was moderate but reached a nine-month peak.
