- Prior 52.3
- Composite PMI 49.2 vs 52.1 prior
Key findings:
- Fresh declines in output and new business
- Highest rate of cost inflation in over three years, driving a steeper hike in charges
- Confidence among weakest in more than five years
Comment:
Eleanor Dennison, Economist at S&P Global Market Intelligence:
“The Italian services economy showed signs of fragility in March, as challenging external conditions due to war in the Middle East weighed on demand and activity. The sector contracted at the strongest pace in nearly two and-a-half years, marking just the fourth monthly fall in output seen over this period.
“Hikes to fuel, energy, raw material as well as wage costs placed additional pressure on operating expenses, with the rate of input price inflation soaring to its highest in over three years. With companies pushed to raise their own charges to protect margins, the outlook for future demand appears more difficult to navigate.
“Although at the top level, March appeared to be a challenging month for Italian service sector firms, there were some glimmers of resilience beneath the surface. Even against a backdrop of uncertainty, growth was recorded across two of the five monitored sectors.”
This article was written by Giuseppe Dellamotta at investinglive.com.
