Italy services costs rise at fastest pace in over three years, PMI shows

Cost pressures in Italy's service sector have hit their highest level in over three years, driven by the conflict in the Middle East. The measure of input cost inflation in the Italian service sector accelerated to 65.5 in April, marking the highest reading since February 2023. The headline PMI, a gauge of services activity, moved towards stabilisation in April, standing at 49.8, up from 48.8 in March. This has caused uncertainty and a squeeze on margins, which may have an adverse impact on labour market and investment outcomes.