Latest data released by Markit - 1 July 2021

  • Prior 53.1
  • Composite PMI 58.3
  • Prior 55.7

Looser restrictions are leading to an increased pace in Italy's business activity, with the jump being the fastest since January 2018. New orders are seen increasing sharply again while business confidence is at its highest in over 11 years. Markit notes that:

"The Italian services sector continued on its recovery path during June, with the rebound gathering pace amid the easing of COVID-19 restrictions. Business activity rose at the fastest rate since January 2018, amid another sharp upturn in new work, while business confidence was the strongest for more than eleven years.

"As a result, the latest expansion in private sector output was the quickest since early 2018 and marked. Manufacturing led the upturn, with another sharp increase in output, but a strong services performance also spurred on growth. Inflationary pressures remain a concern, however, as Italian firms recorded their steepest rise in costs for 15 years during June. The strongest pressure came from the goods producing sector, which continues to face shortages and substantial supply woes, but services too saw a rapid rate of cost inflation.

"Overall, the closing month of the second quarter brought with it mostly good news for the Italian economy. The recovery remains strong, according to the latest PMI data, with client demand continuing to strengthen as lockdown measures were eased. Despite intense inflationary pressures, firms remain highly optimistic of output growth over the coming year."