Service Sector Growth in December

In December 2024, Italy's service sector experienced a slight recovery, as indicated by the HCOB Italy Services PMI rising to 50.7 from November's contraction-level reading of 49.2. This improvement, reported by S&P Global and Hamburg Commercial Bank (HCOB), was driven by new customer acquisitions and increased workloads.

Challenges in Demand and Export Orders

Despite the uptick in activity, the sector faced ongoing challenges. Demand conditions remained fragile, with new business declining for the second consecutive month. The autos sector's weakness and reduced export orders, particularly from Europe, further hindered growth.

Expert Analysis

Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, advised caution in interpreting the growth. "Business activity in Italy's service sector increased slightly in December. However, the index indicated contraction in the previous month. Overall new orders declined for the second consecutive month in December, while for foreign orders, a trend of contraction has been observed for a longer period," he said.