- Prior 54.0
- Composite PMI 53.8 vs 53.2 expected
- Prior 53.1
Key findings:
- Rate of growth in new business reaches 19-month high
- Strongest uplift in activity since April 2023
- Inflationary pressures build
Comment:
Commenting on the PMI data, Nils Müller, Junior Economist at Hamburg Commercial Bank, said:
“Italy’s service sector gained traction in November, as the HCOB Business Activity Index climbed to 55.0 from 54.0 in
October, marking the sharpest rise in over two-and-a-half years. This momentum was underpinned by a surge in new
business, which grew at its fastest pace since mid-2024, driven by successful client acquisition. Export orders, however,
slipped back into contraction, with some firms reporting persistent global headwinds and weakness in the automotive sector.
“Hiring continued for a tenth consecutive month, though job creation remained marginal, it aligned with the long-run trend.
Firms reported some spare capacity, as backlogs declined slightly. On the pricing front, inflationary pressures intensified in
November, with input cost inflation rising to the steepest rate since June, fuelled by higher wages and energy expenses. At
the same time, service providers raised their charges to partially offset cost burdens.
“Expectations for the year ahead improved to a four-month high, supported by anticipated investment and new customer
wins, even if confidence remained below historical norms amid uncertainty over international demand and the
implementation of AI.
“The buoyant services performance lifted overall private sector growth. The HCOB Italy Composite PMI rose to 53.8 from
53.1 in October, its highest reading since April 2023. Manufacturing output contributed only modestly to growth, leaving
services as the clear engine of expansion. With demand strengthening and confidence improving, Italy’s economy enters
year-end on firmer footing, though inflation and subdued international demand remain key risks
