Italy May final services PMI 54.2 vs. 54.4 expected

• Final Services PMI 54.2 vs. 54.4 expected and 54.3 prior.
• Final Composite PMI 52.3 vs. 52.6 prior.

Key findings:

• Slower growth of both activity and new work.
• Inflationary pressures ease but remain historically elevated.
• Outlook brightens and jobs growth is accelerated.

Comment:

Commenting on the final PMI data, Dr Tariq Kamal Chaudhry, Economist at Hamburg Commercial Bank, said:

“The Italian service sector continues to grow strongly. The HCOB Business Activity PMI Index for May has remained stable
at 54.2. The growth seems to have a solid foundation and is likely to continue marching forward, with encouragement taken
from the strong upward trend in the New Export Business Index”

“The service sector is showing resilience. The promising outlook, with growing orders both domestically and internationally,
is reflected in increased hiring. What’s encouraging about the employment figure is that respondents noted that many new
hires were on permanent contracts.”

“A major downside of the survey is the continued sharp rise in input prices. Panellists have reported higher costs for
personnel, energy, and utilities. The only silver lining is that they can pass on at least some of the price growth to consumers
due to improved demand conditions.”

“Italian service providers are looking optimistically towards the future. Future activity expectations have improved among
service companies. However, the sub-index remains below the historical average. According to anecdotal reports,
companies have linked their confidence to an increase in new customers, as well as hope for a better economic and
geopolitical climate.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.