The IHS Markit Italy Services PMI increased to 51.1 in December of 2019 from 50.4 in November, slightly higher than market expectations of 51. The reading pointed to the seventh month of increases in service sector activity, partially due to a further rise in new orders amid stronger domestic demand conditions. In contrast, new export orders continued to decline. Also, job creation softened to the weakest since April and capacity pressures were stable. On the price front, cost inflation increased while output charges fell. Finally, Italian service providers remained optimistic with regards to business activity over the coming 12 months, with expectations strengthening from November. The level of positive sentiment remained below the long-run series average, however. Services PMI in Italy averaged 50.38 points from 2011 until 2019, reaching an all time high of 57.70 points in January of 2018 and a record low of 42.30 points in April of 2012. source: Markit Economics
Services PMI in Italy is expected to be 51.10 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in Italy to stand at 52.90 in 12 months time. In the long-term, the Italy Services PMI is projected to trend around 54.40 points in 2020, according to our econometric models.