Italian Private Sector Regains Growth Momentum

The HCOB Italy Composite PMI rose slightly to 51.5 in July 2025 from 51.1 in June, signaling modest private sector growth at the start of Q3.

The expansion continued to be driven by services (PMI at 52.3), while manufacturing output fell again (PMI at 49.8).

This sectoral split was mirrored in new orders: overall inflows grew only slightly, and export orders declined, though the pace of decline eased from June.

Employment rose modestly but at a softer pace, as backlogs of work continued to fall across both sectors, especially in manufacturing.

Despite softer input cost pressures, the weakest since last November, firms raised their selling prices at the fastest rate in 15 months, suggesting resilient demand or margin recovery.