ROME, Jan 6 (Reuters) – Growth in Italy’s services sector slowed in December after a surge the month before, a business survey showed on Tuesday, suggesting the economy was still expanding at the end of 2025 but was losing momentum.
The HCOB Italy Services PMI Business Activity Index fell to 51.5 in December from 55.0 in November, when it had reached its highest level in more than 2-1/2 years.
While the index stayed above the 50 threshold that separates growth from contraction, the survey showed the pace of expansion was modest and below the 2025 average.
The cooling in activity came despite a further improvement in demand, with the new business index rising to 54.9 from 54.8 — its highest level for 20 months. The new export business index came in at 49.7 from a previous 49.0.
“The Italian private sector cooled as 2025 drew to a close,” said Nils Müller, Junior Economist at Hamburg Commercial Bank. “Employment growth remained slight, as firms balanced capacity with workloads, and backlogs continued to decline.”
Looking ahead, more than one-third of Italian service providers were confident that activity would rise this year, against 11% who predicted a fall. Spending on marketing, the Winter Olympic Games due in February and efforts to attract new clients were expected to drive new business and subsequently raise activity.
HCOB’s sister survey for Italy’s smaller manufacturing sector, published on Friday, slipped back into contraction in December, hit by a decline in output and new orders.
The composite PMI, combining manufacturing and services, fell to 50.3 in December from 53.8 the month before, posting the lowest reading since last January.
(Reporting by Crispian Balmer; Editing by Hugh Lawson)
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