Latest data released by Markit - 3 June 2020
- Prior 10.8
- Composite PMI 33.9 vs 28.5 expected
- Prior 10.9
Much like the Spanish reading earlier, the headline figure shows a stronger bounce than expected but again this only relates to the shift in businesses feeling that activity is better in May relative to April - not a representation of how those conditions are.
Markit does highlight that the continued downturn sees total new businesses contract at its third-quickest pace since the survey's inception in 1998 with foreign demand for Italian services also declining among its fastest pace on record, so some perspective there.
Markit notes that:
"The COVID-19 pandemic and associated lockdowns continued to weigh heavily on the performance of the Italian service sector during May, with further substantial reductions in both business activity and new orders. With the economy beginning to reopen and restrictions loosening, however, the falls softened from April's records.
"Meanwhile, job cuts continued, with staff numbers falling at the second-quickest rate on record. Firms registered renewed optimism with regards to activity over the year ahead, but sentiment remained among the lowest in the series history.
"A similar trend was seen in the manufacturing sector, where the downturn continued, albeit at a softer pace. Nonetheless, the Italian economy remains in an extremely challenging period. Preliminary GDP estimates for the first quarter of 2020 recorded a decline approaching 5% on a quarterly basis, and PMI data for the second quarter so far point to another considerable contraction."
