Forex News

Italy October services PMI 46.4 vs 48.5 expected

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  • Prior 48.8
  • Composite PMI 45.8
  • Prior 47.6

New business declines at its fastest pace since January 2021 with survey respondents noting poor demand, linked to higher prices and heightened economic uncertainty, being a main drag on activity. S&P Global notes that:

“PMI data for October pointed to the Italian service sector dipping further into contraction territory amid the quickest reduction in new business since the start of 2021. Firms cited both economic uncertainty and higher prices.

“A quicker contraction was also recorded in manufacturing production in October. As a result, Italian private sector output declined at the quickest rate for nearly two years.

“A more positive impact from poor demand was a further slight cooling of inflation pressures at the start of the fourth quarter. Nonetheless, rates of increase in both costs and charges remained amongst the most marked on record, with firms reporting the pass through of greater input prices due to higher energy, fuel, material and staff costs.

“The sustained downturn was again reflected in sharply subdued expectations towards the outlook amongst Italian firms. Business confidence at the composite level was unchanged on September’s 28-month low and amongst the weakest on record.”