May services activity in Italy contracted more than expected, signaling weaker economic momentum amid rising global trade tensions.
Italy’s services PMI dropped to 49.4 in May, below the 49.1 forecast and down from April’s 49.8. The reading indicates a contraction in the sector, contrasting with broader expectations for stabilization.
Analysts had anticipated a slight improvement, but persistent inflationary pressures and subdued demand weighed on activity. The composite PMI, though not yet released, is expected to reflect similar weakness after April’s 50.5 print.
Markets are monitoring the data for signs of slowing eurozone growth, particularly as trade tensions escalate with proposed US tariffs on global imports.