Italy’s Services Sector Gains Momentum in April, PMI Shows

Italy’s services sector continued its upward trend in April, marking a fifth consecutive month of expansion and accelerating from the previous month, according to data released on Tuesday.

The HCOB Services Purchasing Managers' Index (PMI) rose to 52.9 in April, up from 52.0 in March, signaling solid growth above the 50-point threshold that separates expansion from contraction. The result also exceeded analysts’ expectations, with a Reuters poll forecasting a reading of 51.4.

Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, described the performance as “relatively robust growth” for the eurozone’s third-largest economy.

The new business sub-index climbed to 52.7, up from 51.8 in March, indicating improving demand in the services sector.

In contrast, Italy’s manufacturing sector remained in contraction for the 13th straight month in April, as shown by HCOB’s corresponding survey. However, the pace of decline slowed compared to the previous month.

The combined strength in services helped push the composite PMI—which merges services and manufacturing—to 52.1 in April, up from 50.5 in March, marking the strongest expansion in nearly a year and offering signs of renewed momentum for Italy’s broader economy.

“The Italian private sector has grown for three months in a row, led by the service sector, while manufacturing output has practically stopped shrinking after a year,” de la Rubia noted.

Recent official data from national statistics agency ISTAT showed that Italy’s GDP grew by 0.3% in Q1 2025, slightly outperforming expectations.

These modest but encouraging indicators come after Prime Minister Giorgia Meloni’s government cut its 2025 full-year growth forecast to 0.6%, citing increased uncertainty tied to U.S. trade policy shifts and global economic headwinds.

Source: Reuters