S&P Global Italy Services Purchasing Managers Index (PMI)

The Service Purchasing Managers Index (PMI) is released by IHS Markit monthly based on data collected through surveys of purchasing managers employed in service sector companies.

Markit Service PMI only includes information from private companies. Purchasing managers fill in questionnaire, in which they characterize the main parameters of their work:

• Output
• New orders
• Backlogs
• Price paid (for materials, services and goods purchased by the company)
• Prices received
• Suppliers' delivery times
• Inventories
• Employment
• Future output

Respondents are asked to provide a relative estimate, showing whether the above parameters have improved, deteriorated or have not changed. Individual subindexes are calculated based on these answers. These subindexes characterize inflation, employment and other key indicators of economic activity.

This index has a reference value of 50.0. When the data are above this threshold, the values indicate that there is an expansion of the service sector. When the data are below the threshold, the values indicate that there is a contraction of the service sector.

Purchasing managers are considered to be among the first to see changes in industry sentiments and therefore the PMI is considered to feature a headline number and to provide insights into other key economic drivers such as GDP, inflation, employment, etc.

In case the published value is above the expected one, one could assume an appreciation of the Euro. In the event that the published value is below that expected, it could be assumed that the Euro will be depreciated and the Euro quotes will move accordingly.