Italy April services PMI 47.3 vs 50.0 expected

Latest data released by Markit – 5 May 2021

  • Prior 48.6
  • Composite PMI 51.2 vs 53.0 expected
  • Prior 51.9

While the rest of the region saw more upbeat performances in April, Italian business activity struggled as the services sector contracted further – missing on estimates. New orders and exports showed declines to start Q2, with the impact of tighter virus restrictions still being felt last month. Markit notes that:

“The downturn in the Italian service sector
continued into Q2, with the headline Business
Activity Index falling to a three-month low and
signaling a quicker rate of contraction. Demand
conditions remained relatively muted as virus-related restrictions persisted. Meanwhile, the
sombre demand environment was not confined
to the Italian market, as marked reductions in
exports were also recorded.

“Subsequently, firms made further cuts to their
workforces in April, with the rate of reduction the
sharpest since January.

“On a brighter note, a faster uptick in
manufacturing production outweighed the
decline in services activity, with private sector
growth now extending to three consecutive
months. Although latest data highlights ongoing
concerns in services, firms are welcoming the
gradual relaxing of COVID-19 measures and
expect stronger demand conditions to follow.”

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