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Wage Costs Noted As An Inflationary Driver In Feb PMI

ITALY DATA

Italian February services PMI was broadly in line with consensus at 52.2 (52.3 cons, 51.2 prior), the highest since June 2023.

  • As in Spain, salary costs were again noted as a driver of inflationary pressures. Underscoring the ECB's concern with services inflation stickiness (most recently verified in the February flash inflation print).
  • Nonetheless, Spain and Italy continue to outperform French/German counterparts in both survey data and hard data (e.g. Q4 GDP).
  • Once again, bond markets saw a limited reaction to the release.

Key notes from the release:

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Italian February services PMI was broadly in line with consensus at 52.2 (52.3 cons, 51.2 prior), the highest since June 2023.

  • As in Spain, salary costs were again noted as a driver of inflationary pressures. Underscoring the ECB's concern with services inflation stickiness (most recently verified in the February flash inflation print).
  • Nonetheless, Spain and Italy continue to outperform French/German counterparts in both survey data and hard data (e.g. Q4 GDP).
  • Once again, bond markets saw a limited reaction to the release.

Key notes from the release:

Keep reading...Show less