Italy Manufacturing Sector Growth Hits Four-Year High

Italy’s S&P Global Manufacturing PMI climbed to 52.9 in May 2026, up from 52.1 in April and beating market forecasts of 52.0. This marks the strongest expansion in the sector since April 2022, driven by rising demand as clients stockpile safety reserves amid shortages and anticipated price hikes. New orders grew at one of the fastest rates in four years, prompting manufacturers to increase output and purchasing activity, the latter at levels last seen in April 2022, to build buffer stocks against supply chain disruptions. Employment growth slowed, but backlogs rose for the first time in nearly four years. Price pressures intensified, with input and output inflation hitting four-year and three-and-a-half-year highs, respectively. Finally, business confidence saw a slight uptick on hopes of positive outcomes from sales negotiations and more favorable economic conditions.

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.