FX.co ★ Italy Private Sector Regains Momentum

The HCOB Italy Composite PMI improved to 51.4 in January 2026 from 50.3 in December, indicating a renewed yet modest growth in the private sector. The expansion was primarily driven by the services sector, which experienced a notable increase in activity, while the downturn in manufacturing output showed signs of easing. Overall, new orders at the composite level grew at their slowest rate in six months, as demand in the services sector moderated and manufacturing sales continued their decline. Employment within the private sector saw a slight increase, with both the services and manufacturing sectors hiring more staff, although the backlog of work decreased at a less rapid rate than in previous months. Regarding prices, there was an uptick in input costs, especially impacting manufacturers, which contributed to increased overall pricing pressures. Consequently, service providers raised their charges at their quickest rate in six months. Looking forward, business sentiment has softened, with companies in the service sector showing more cautious expectations for future growth.