- Prior 52.8
- Composite PMI 52.1
- Prior 53.6
Growth in Italy's services sector slows in March, fitting with the rest of the region as the Russia-Ukraine conflict weighed on demand and overall sentiment. Besides that, more intense inflation pressures were observed as well with the rate of cost inflation accelerating sharply to a new survey record for a third month in a row. S&P Global notes that:
"Latest PMI data pointed to a cooling of services growth in March, with inflows of total new work rising at a weaker pace amid a fresh decline in export orders, with client demand reportedly dampened by the war in Ukraine.
"Subsequently, private sector growth slowed at the end of the first quarter, as the weaker upturn in services coincided with a slower expansion in factory production.
"At the same time, Italian firms recorded further severe inflationary pressures, with the rate of cost inflation hitting a fresh series peak and costs levied by companies rising at a near-record pace.
"Firms are battling with both cooling demand and rising prices which, combined with a clouded outlook amid the war in Ukraine, led to a sharp moderation of business confidence in March. The level of positive sentiment fell to a 16-month low as firms grow ever more concerned about the economic outlook."