October 03, 2024 07:51 GMT
ITALY DATA: September Composite PMI Below 50 For First Time This Year
ITALY DATA
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The Italian services PMI was a little weaker than expected at 50.5 (vs 51.1 cons, 51.4 prior), after Tuesday’s manufacturing PMI also printed below consensus estimates. The composite PMI thus fell below the expansionary 50-handle for the first time this year.
Although output charge inflation was “one of the least pronounced” in three years, there were some reports of firms passing on input cost rises to consumers to protect margins.
Key notes from the release:
- “It was clear that subdued demand conditions are weighing on firms' activity and employment decisions. Although both remained in growth territory, paces of expansion have been trending downwards in line with waning new work”.
- “Mirroring the trend for activity, employment numbers were raised marginally in September”.
- “Input prices faced by Italian services firms rose rapidly in September, amid reports of raised staffing and energy costs”.
- “Italian service providers were less aggressive in their price setting in September. Those firms that did hike their fees aimed to protect profit margins by passing some of the burden of greater costs to customers”.
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