Italy Manufacturing Growth Slows to Four-Month Low

The S&P Global Italy Manufacturing PMI fell to 51.3 in July 2026 from 52.2 in June, missing market expectations of 52.3 and marking its lowest reading in four months. The slowdown reflected fading support from earlier stockpiling linked to the Iran conflict, as new orders declined again amid subdued demand, with firms citing geopolitical uncertainty and inflationary pressures. Export orders also fell for the first time in five months. Manufacturing output expanded at a softer pace, while longer supplier delivery times provided a positive contribution to the headline index despite reflecting ongoing supply disruptions. Backlogs of work recorded their sharpest decline of the year, and both employment and purchasing activity weakened. At the same time, input cost pressures eased, while business confidence deteriorated.

The S&P Global Italy Manufacturing PMI fell to 52.2 in June 2026, down from 52.9 in May, missing market forecasts of 52.6. While the reading still indicates expansion, marking one of the strongest performances in over four years, the pace of growth in output, new orders, and employment has softened. Though the sector continues to benefit from earlier stockpiling efforts, June’s data suggests this temporary support is fading. Manufacturers responded to the slowdown by reducing their purchasing activity, even as input stocks rose. Ongoing supply chain disruptions, exacerbated by the conflict in the Middle East, further strained vendor performance. On a positive note, both input and output price inflation eased from multi-year highs, and business confidence improved, fueled by hopes for a resolution to the Middle East conflict.

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.