- Prior 52.9
- Composite PMI 52.1 vs 51.4 prior
Key findings:
- Weaker rise in new business volumes, despite fresh increase in exports
- Job creation hits seven-month high as outlook brightens
- Inflationary pressures increase
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“Overall, the latest PMI figures paint an encouraging picture. The manufacturing sector recorded a solid improvement, while the service sector continues to expand at a comfortable pace. This could give Italy's private sector a welcome boost overall and enable it to get off to a solid start in the first quarter of the new year.
“The services sector remains in clear expansion mode. Some firms benefited in February from the Winter Olympics in Milan and Cortina, while others reported broad-based gains from new clients and successful bids in public tenders. A further positive sign is that foreign demand increased slightly after three consecutive months of decline.
“The outlook, however, is more challenging to gauge. Around a third of panellists anticipate an expansion of business activity over the coming twelve months (compared to only 10% that expect a fall), and the corresponding index has risen compared to January. Yet by historical standards, sentiment remains subdued. The continued upward trend in hiring signals cautious optimism: firms are looking ahead positively, but their stance remains measured.
“Price and cost pressures remain elevated across Italy’s service sector. Companies cite rising wages as well as higher transport and energy costs. Output prices also increased in February, partly driven by markups from businesses benefiting from the Olympic Games.”
