ITALY DATA: Sep Services PMI: Stronger Than Expected, Similar Themes To Spain

In a similar fashion to Spain, the Italian September services PMI was stronger-than-expected, rising to 52.5 from 51.5 cons and prior. This helped the composite PMI remain steady at 51.7 after the manufacturing component disappointed on Wednesday.

There were other similarities to the Spanish reading: Export new orders were weaker than domestic orders, while wage costs contributed to a rise in input (and thus output) prices. 

Key notes from the release:

• “Where a rise in activity was recorded, respondents often linked this to higher new orders amid improving customer demand and greater interest in their products.”
• “The rise in overall new orders was registered in spite of a further reduction in new business from abroad….Muted demand in Europe and geopolitical issues were reportedly behind the latest decrease in new export orders.
• “Staffing levels increased for the eighth month running. That said, the rate of job creation eased again and was the softest since April.”
• “Service providers recorded a further sharp increase in input costs”…” Rising salaries were often mentioned as having contributed to inflation, with firms mentioning that pay increases were in some cases linked to collective agreements”
• “Higher input costs and increased fees as a result of events held during September meant that output prices rose again over the course of the month”
• “Sentiment ticked up from the previous month, but remained weaker than the series average.”