The HCOB Italy Composite PMI fell to 50.3 in December 2025, down sharply from November’s two-and-a-half-year high of 53.8, signaling the slowest pace of private sector expansion in nearly a year. Growth in the services sector moderated, while the manufacturing sector returned to contraction. At the composite level, new business expanded at its weakest rate in three months. Employment across the private sector remained unchanged in December, while firms were able to reduce outstanding business, supporting overall operational efficiency. Cost pressures eased broadly across manufacturing and services, contributing to a composite reading below its long-term average. Although the overall pace of price inflation softened, it remained elevated by historical standards. Looking ahead, manufacturers maintained a notably more positive outlook than their service sector peers, suggesting optimism about production prospects despite slowing activity.
