Prior 48.8Composite PMI 50.5 vs 49.2 prior
Key findings:
Activity levels little-changed Growth in overall new business reinstated despite sharper fall in export sales Cost pressures intensify, but charge inflation cools
Comment:
Eleanor Dennison, Economist at S&P Global Market Intelligence:
“The uncertainty caused by the outbreak of war in the Middle East continued to weigh on the Italian service sector as we move into the second quarter of the year. Not only did firms continue to face building cost pressures, but this also again had a knock-on effect on demand. Although growth in new business was renewed, the upturn as among the weakest seen since the start of last year.
“April data pointed to the largest gap in the PMI price indices since the end of 2022, as in fear of deterring already muted demand, firms were less able to pass cost burdens onto customers. This squeeze on margins is likely to have an adverse impact on labour market and investment outcomes if sustained.”
This article was written by Giuseppe Dellamotta at investinglive.com.