Italy’s services sector grew for the sixth consecutive month in May, reaching its highest expansion rate in nearly a year, according to a survey released this week.
The data provides a positive signal for stronger economic growth in the eurozone’s third-largest economy.
The HCOB Services Purchasing Managers’ Index (PMI) increased to 53.2 in May, up from 52.9 in April, surpassing forecasts and remaining well above the 50.0 mark that indicates growth.
A Reuters news agency poll of 11 analysts had predicted a lower reading of 52.0.
Hamburg Commercial Bank economist Nils Muller noted that the strongest services PMI reading since June of last year was “underpinned by resilient domestic demand and a steady inflow of new business.”
The survey’s new business subindex registered at 52.4 in May, slightly lower than April’s 52.7 but still comfortably above the 50 level.
Meanwhile, the employment component for the services sector increased to 52.2 from 51.2, indicating continued job growth.
“While the pace of new order growth softened slightly, it remained elevated by historical standards, suggesting that the recovery is gaining traction,” Muller went on to add.
HCOB’s corresponding survey for the manufacturing sector, released on Monday, revealed a 14th consecutive month of contraction in May, though it also pointed to emerging signs of stabilisation.
Meanwhile, the composite PMI, which merges data from both the manufacturing and services sectors, rose to 52.5 in May from 52.1 in April, marking its highest level since April last year, Reuters reports.
Furthermore, Italy’s gross domestic product grew by 0.3% in the first quarter compared to the previous quarter, according to data released last week by the national statistics agency ISTAT.
These recent signs of moderate improvement follow the move by Prime Minister Giorgia Meloni’s administration in April to cut its 2025 full-year growth forecast by half to 0.6%, amid rising uncertainty tied to US trade policy developments.