FX.co ★ Italy Services Activity Growth Slows

In March 2025, the HCOB Italy Services PMI registered a decline to 52, down from February’s eight-month peak of 53, and slightly missing the projected value of 52.5. Despite a second consecutive month of growth in new orders, the pace of expansion slowed. Export orders experienced a slight contraction but overall were nearing stabilization. Employment levels experienced moderate growth. This blend of sustained job creation and reduced influx of new work helped firms address and reduce their backlog of orders. On the financial front, input price inflation surged to nearly a one-year high, driven by rising wages, energy, and raw material costs. Consequently, companies implemented significant price increases, marking one of the most notable hikes over the past year. Looking forward, a greater share of service providers anticipates a rise in business activity over the upcoming 12 months. Nonetheless, there was a marked decline in overall confidence, indicative of mounting concerns regarding the future economic environment.