FX.co ★ Italy Services Activity Picks Up in January

The HCOB Italy Services PMI climbed to 52.9 in January 2026, up from a four-month low of 51.5 recorded the month prior, surpassing market expectations of 51.4. This uptick in activity propelled the headline index above its historical average, marking fourteen consecutive months of growth. Despite experiencing slower growth in new orders and a pronounced decline in export sales, output managed to increase. Employment also continued its upward trajectory, with firms recruiting for various roles, although the rate of job creation was modest. The slight decline in work backlogs indicates that capacity is largely in line with current workloads. On the pricing front, input cost inflation decreased to a three-month low, despite ongoing increases in staffing and energy costs. Conversely, output charge inflation rose to a six-month peak. Lastly, business outlook dimmed for the second consecutive month, reaching a five-month low, due to worries about competitive pressures and muted economic forecasts.