FX.co ★ Italian Private Sector Growth Softens in March

The HCOB Italy Composite PMI recorded a decline, registering at 50.5 in March 2025, down from 51.9 in February. This indicates modest economic expansion for the second month in a row. The services sector was the primary driver of this growth, with a PMI of 52, while the manufacturing sector continued to experience contraction, posting a PMI of 46.6. New orders remained stable, as advances in the services sector counterbalanced the setbacks in manufacturing. Employment within the private sector exhibited only a marginal rise; service providers continued their hiring activities, whereas manufacturers reduced their workforce for the second consecutive month. Both sectors possessed sufficient capacity to manage their backlogs. Inflationary pressures intensified, with operating costs escalating at the fastest rate in over two years, particularly within the services sector. Consequently, both manufacturers and service providers increased their prices, leading output charge inflation to reach its highest point in almost a year.