FX.co ★ Italy Services Activity Growth Eases to 7-Month Low

The HCOB Italy Services PMI decreased to 51.5 in August 2025, down from 52.3 in July. This decline aligned with forecasts and represents the lowest point since January. Despite this slowdown, new orders showed robust growth, reaching their fastest expansion rate in six months due to new client acquisitions and enhanced domestic demand. Nonetheless, a gap between domestic and international sales persisted, with export orders declining for the thirteenth month in a row, albeit less sharply. Employment growth saw a deceleration, although backlogs of work decreased for the sixth consecutive month, indicating that current staffing could suffice to meet demand. Cost pressures, however, increased as firms reported rising expenses for fuel, energy, rent, and other business inputs. Output prices saw the slowest growth in nine months. Finally, although business confidence for the upcoming 12 months remained positive, it dropped to one of its lowest levels in over four-and-a-half years.