The HCOB Italy Services PMI climbed to 54 in October 2025 from 52.5 in September, surpassing market expectations of 53. This signaled the strongest expansion in services activity since May 2024, driven by robust growth in both output and new orders. The increase in new orders was supported by fresh customer wins and an uptick in export sales that ended a 14-month run of decline. Firms also benefited from milder cost pressures, with input price inflation falling to its lowest level in four-and-a-half years, while output price inflation rose to a three-month high but remained below average. However, employment growth was only modest, and business confidence edged down from September and remained subdued by historical standards.