Italy service costs hit 40-month high as activity falls
Italian service costs hit a 40-month high in May as inflation rose. The headline PMI fell to 49.4 to signal a third month of contraction for the sector.
Italy services input costs rose to 66.7 in May, a 40-month high, as the headline PMI fell to 49.4. This third consecutive month of contraction for the sector outperformed the 49.1 level expected by analysts. Persistent cost inflation driven by Middle East conflict pressures threatens profit margins as the government forecasts sub-1% growth through 2028.
### Input Costs Hit Multi-Year Highs Input inflation tracked by S&P GLOBAL INC accelerated from 65.5 in April, reaching its highest level since January 2023. The headline services PMI of 49.4 missed the 50.0 growth threshold but remained above the 49.8 recorded in April.
