Italy Private Sector Activity Growth Broadly Stable

The S&P Global Italy Composite PMI stood at 50.4 in May 2026, largely unchanged from April's 50.5, indicating broadly stable private-sector activity. A sharper contraction in services activity was largely offset by stronger growth in manufacturing output. Total new orders declined slightly, with the weakness concentrated in the services sector. Employment continued to rise modestly across both sectors, while backlogs of work was broadly stable. Meanwhile, inflationary pressures intensified, with input cost inflation accelerating to its highest level in more than three-and-a-half years. This prompted firms to raise their selling prices at the fastest pace in just over three years.

The S&P Global Italy Composite PMI rose to 50.5 in April 2026 from 49.2 in March. The latest reading signals a return to expansion in overall private sector activity after a brief contraction in the previous month, largely supported by the manufacturing sector. Meanwhile, new orders in the services sector increased, offsetting a decline in manufacturing order books. Additionally, employment growth and business confidence regarding the 12-month outlook improved slightly compared with March. On the price front, inflationary pressures intensified, with input costs rising at their fastest rate in three and a half years. Firms responded by increasing output charges at the steepest pace since February 2023.

The S&P Global Italy Composite PMI fell to 49.2 in March 2026 from 52.1 in February, pointing to the first contraction in private sector activity since January 2025 and the biggest since November 2024. The decline was led by a renewed fall in services activity and amid a softer expansion in manufacturing output. As similar trend was true for new orders, which likewise recorded a fresh contraction in March. Meanwhile, private sector employment growth largely stalled, and backlogs were stable. With regards to prices, inflation of input costs and output charges accelerated to 40- and 37- month highs, respectively.