FX.co ★ Italian Services Sector Slips Back Into Contraction as HCOB PMI Falls Below 50 in March

Italy’s services sector lost momentum in March, slipping back into contraction territory as the HCOB Italy Services Purchasing Managers’ Index (PMI) dropped to 48.8. The latest reading, covering March 2026, marks a clear deterioration from February’s 52.3, when the indicator was still signaling expansion.

The move below the 50.0 threshold — which separates growth from contraction — suggests that activity in Italy’s services economy weakened notably over the month. The shift from 52.3 in February to 48.8 in March points to a reversal in business conditions after a period of modest growth.

The updated data, released on 7 April 2026, will likely sharpen focus on the resilience of Italy’s domestic demand and the broader outlook for the country’s economy, given the central role of services in overall growth and employment.