July 03, 2024 07:50 GMT
June Services PMI: Inflation Eases As Services Remain Expansionary
ITALY DATA
The Italian June services PMI was broadly in line with consensus at 53.7 (vs 53.8 cons, 54.2 prior), printing in expansionary territory for the sixth consecutive month.
The inflation-specific commentary in the report was somewhat similar to Spain: Overall inflation pressures softened slightly, but increased wage costs were being passed on to output charges where possible.
Key notes from the release:
- “The rise in output was linked to an influx of new clients and improved demand for Italian services”.
- “Firms were confident that business conditions would improve and expected increased inflows of new customers and projects”.
- “Jobs growth was maintained for an eighth month running in June”... “Positive signals can also be taken from panel member reports of onboarding new staff onto full-time contracts”.
- Cost pressures remained elevated, “Rising wage and energy related costs were cited as drivers of the increase”.
- “Output charges rise further, as companies looked to pass-through some of the cost burden to customers. That said, the rate of output price inflation was the softest since last November and moderate overall”.
Keep reading...Show less
182 words