Italian Services Sector Grows for Fifth Consecutive Month

Italy's services sector continued its expansion for the fifth consecutive month in April, with growth accelerating compared to March, driven by a notable increase in new business. The HCOB Services PMI for Italy rose to 52.9, signaling robust sectoral health, and the composite PMI indicated the strongest expansion in nearly a year, suggesting a positive outlook for the broader Italian economy despite ongoing challenges in manufacturing. Employment in Italian services edged up, though business sentiment weakened due to rising uncertainty. In contrast, France's services sector contracted for the eighth month in a row, with the PMI falling further below the 50 threshold as new orders sharply declined and demand remained weak. French firms continued to reduce workforce capacity amid poor market conditions, and overall confidence stayed subdued, despite a modest uptick in optimism over the 12-month outlook. These divergent trends highlight growing strength in Italy's service industries, while France continues to face persistent headwinds.