FX.co ★ Italian Private Sector Growth Hits 11-Month High

Italy's HCOB Composite PMI increased to 52.1 in April 2025, up from 50.5 in March, signifying the most robust growth in the private sector in almost a year. This advancement was primarily driven by the services sector, which recorded a PMI of 52.9, while the manufacturing sector showed signs of approaching stabilization even though new orders continued to decline, reflected in a PMI of 49.3. The resurgence in new business growth reached its highest rate in 12 months. Job creation, however, remained sluggish, pointing to existing surplus capacity. The reduction in workloads persisted, continuing nearly three years of contraction. The rise in input costs was at its slowest for the year, as both the services and manufacturing sectors experienced alleviated pressures. Although overall selling price inflation decelerated, manufacturers increased output prices at the highest rate witnessed in over two years. Despite this growth, the outlook for future activity was at its lowest since late 2021, highlighting a growing sense of caution among firms.