Italy Private Sector Activity Rises to 4-Month High

The S&P Global Italy Composite PMI edged up to 50.8 in June 2026 from 50.4 in May, indicating another improvement in overall business conditions. This was the highest reading since February, supported by growth in both manufacturing and services activity. New business rose for the first time in four months, with the services sector recording a stronger uptick in orders than manufacturing. However, employment growth slowed to a near-neutral level amid the fastest reduction in backlogs of work in 17 months. Inflationary pressures eased to their lowest seen since February. Input and output price inflation were higher in the manufacturing sector than in services.

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.