Italy Manufacturing Growth Hits Four-Year High

The S&P Global Italy Manufacturing PMI climbed to 52.1 in April 2026, up from 51.3 in March and surpassing market expectations of 51.9. This marks the strongest expansion in the manufacturing sector since April 2022. Output growth reached a three-year high, job creation accelerated to its best level since September 2024, and buying activity growth hit a four-year record. However, the war in the Middle East continued to strain supply chains, with delivery times lengthening at the fastest pace since mid-2022. Cost inflation rose to its highest level in nearly four years, while selling price inflation reached its strongest point in three and a half years. Business confidence remained below the long-run average due to concerns about the economic impact of the ongoing conflict.

The S&P Global Italy Manufacturing PMI rose to 51.3 in March 2026 from 50.6 in February and above market forecasts of 50.9. While signaling only a modest improvement in operating conditions, the reading marked the strongest performance in over three years. Output increased for a second consecutive month, though growth slowed and remained modest, while order books edged up as buyers sought to get ahead of expected price rises. Export sales grew marginally for the first time in four months, and employment also rose. Purchasing increased for the first time in over three years, resulting in the first rise in inventories in eight months as manufacturers anticipated supply chain disruptions and higher prices. The Middle East war pushed input lead times to their longest since October 2022 due to shortages and logistical issues. Rising raw materials, transport, and energy pushed input costs and selling prices to three-year highs. Looking ahead, business sentiment stayed positive.

The HCOB Italy Manufacturing PMI rose to 50.6 in February 2026, up from 48.1 in January and above the market consensus of 49.5. The reading, the highest in three months, indicated a slight improvement in operating conditions, as output and new orders increased following two months of decline, despite export sales falling at their fastest pace in five months amid elevated global uncertainty. Employment edged up only marginally, limiting purchases of inputs. Meanwhile, input cost inflation reached its highest level since October 2022, and output prices rose at the fastest pace in ten months. Business confidence, however, strengthened to its highest level in over five years.