November 06, 2024 08:52 GMT
ITALY DATA: Strong October Services PMI Consistent With Bank of Italy Survey
ITALY DATA
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The Italian services PMI was stronger than expected at 52.4 (vs 50.2 cons and 50.5 prior). After the manufacturing PMI remained in contractionary territory on Monday, October’s trends echo the Bank of Italy’s latest Business Outlook Survey (released yesterday).
As in Spain, higher salary costs drove increased cost pressures for firms, but there was less passthrough into output charges reported in the Italian survey.
Key notes from the release:
- “Survey respondents noted that a combination of greater new business inflows and an influx of new customers had led to higher activity levels”.
- “The international sales environment remained stuck in a downturn”… “Export conditions were reportedly challenging due to ongoing geopolitical tensions and generally subdued economic conditions abroad”.
- “There was a further substantial rise in cost pressures faced by Italian service providers in October”…“ Greater operating expenses were linked by panellists to higher services fees and wage costs”.
- “There was little change in the degree to which services firms in Italy raised their own fees in October”…“Where an increase was reported, companies blamed stronger cost pressures”.
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