The HCOB Composite PMI in Italy rose to 52.5 in May 2025 from 52.1 in April, marking the strongest expansion in over a year. Growth came from both manufacturing and services, with factories returning to expansion for the first time in months. New orders rose slightly, as manufacturing demand nearly stabilized and services saw slower, but still positive, growth. Jobs continued to increase, mainly in the services sector, helping reduce backlogs of work, especially in manufacturing. Input costs rose, though at a slower pace than in April. While manufacturing costs fell, service businesses faced higher expenses. As a result, selling prices rose at the fastest rate in over a year, mainly driven by services. Business confidence also improved, with stronger optimism across both sectors pointing to a more positive outlook for Italy’s economy.