Italy Private Sector Hits 3-Month Low

The S&P Global Italy Composite PMI slipped to 51.0 in September 2026 from 53.6 in August, marking its lowest level since June and signaling modest output growth, with the weakest expansion recorded in the third quarter. Growth in both business activity and new orders remained concentrated in the services sector, while manufacturing continued to contract, albeit at a slower pace. Employment growth across the private sector eased to a near-stagnant rate, and outstanding business volumes declined only marginally. Meanwhile, inflationary pressures strengthened, with both input costs and output charges rising at the fastest pace in four months.

The S&P Global Italy Composite PMI rose to 53.6 in August 2026 from 52.5 in July, signaling the fastest private-sector expansion since November 2025 and the second-strongest reading in more than three years. Growth was driven by a stronger services sector, which offset a renewed decline in manufacturing output. New business followed a similar pattern, with the drop in new orders at goods producers accelerating. Employment growth strengthened to its fastest pace in more than two years, while the pace of backlog depletion remained moderate. Inflationary pressures eased, although business confidence fell to a three-month low.

The S&P Global Italy Composite PMI rose to 52.5 in July 2026 from 50.8 in June, indicating the robust expansion in private-sector output since November 2025. The improvement was driven by stronger momentum in the services sector, which offset continued weakness in manufacturing. Total new orders increased for the second consecutive month and at the fastest pace so far this year, despite a renewed decline in manufacturing order books. Private-sector employment continued to rise in July, extending the growth trend seen throughout the year, with the rate of job creation reaching its strongest level since June 2025. Meanwhile, both price measures pointed to the softest inflation rates since February.