The HCOB Italy Services PMI edged up to 52.3 in July 2025 from 52.1 in June, but missing market forecasts of 52.6. New orders continued to grow, albeit at the slowest pace in six months, supported by improved sales performance and marketing efforts. Demand stability in the sector remained largely confined to the domestic market, as new export orders declined. Meanwhile, the upward trend for job creation was extended to six months, although the rate of workforce expansion was slightly weaker than in June. Backlogs of work also fell slightly once again. Regarding prices, input cost inflation eased to its lowest level since November 2024, despite continued upward pressure from wages, fuel, and services. However, firms raised their selling prices at a faster pace, reaching a 15-month high. Lastly, sentiment for the year ahead hit its highest level since October 2024, underpinned by expectations of new clients and projects, as well as hopes for improved macroeconomic conditions.