Latest data released by Markit - 4 November 2021
- Prior 55.5
- Composite PMI 54.2
- Prior 56.6
The headline reaffirms a slowdown in Italy's services sector growth (weakest in the current six-month sequence) amid a weaker uplift in new business. With supply-side issues and capacity constraints set to persist for longer, that should weigh on the outlook going into year-end and also next year. Markit notes that:
"The Italian service sector lost further growth momentum in October, with business activity rising at the weakest pace in the current six-month sequence amid a slightly slower uplift in new business. Pressure on capacity continued to build, however, with firms citing logistical issues and goods shortages as drivers behind the latest rise in backlogs. In response, service providers took on additional staff at an increased pace.
"The moderation in services growth, combined with a slightly weaker upturn in factory production led to the slowest rate of increase in private sector output for six months, albeit one that was still moderate. Further headwinds came from inflationary pressures, with private sector cost burdens rising at a near record pace as supply disruptions and rising material, fuel and energy costs continued to push prices higher still, especially in the manufacturing sector.
"Although the pace of expansion remains above the survey's long-run average, supply constraints and inflationary pressures show no signs of subsiding, and with gains to demand from looser COVID restrictions tapering off, we may see a further slowdown over the coming months, especially in comparison to the rapid growth seen earlier in the year."