Italy’s HCOB Composite PMI fell to 51.1 in June 2025 from 52.5 in May, marking the weakest expansion since March. The slowdown was driven by softer growth in services (PMI at 52.1) and a renewed contraction in manufacturing (PMI at 48.4). New business inflows also weakened, with growth in new orders concentrated solely in the service sector. Despite this, private sector employment rose at the fastest pace in a year, even as factories continued to cut jobs. Signs of spare capacity persisted, with backlogs of work falling at a slightly faster pace than the previous month. Input costs rose across the private sector, though output charge inflation eased to its lowest level in 2025. Price increases were confined to services, while manufacturers saw declines in both costs and selling prices. Business confidence about future activity remained largely unchanged from May, reflecting cautious optimism amid mixed sector trends.
