Italy Manufacturing Slips Back Into Contraction

2026-09-01 07:59 By Joana Ferreira 1 min. read

The S&P Global Italy Manufacturing PMI fell to 49.6 in August 2026, down from 51.3 in July and below market expectations of 51.5.

The reading, though only marginally below the 50.0 threshold, marked the first deterioration in operating conditions since January, with output, new orders and purchasing stocks all weighing on the index.

New orders declined for a second consecutive month and at the fastest pace in nearly a year and a half, while export orders also fell.

Weaker production requirements led to the first contraction in manufacturing output in seven months, driven by a decline in intermediate goods production.

Purchasing volumes also fell, posting their sharpest decline in almost a year.

Supply-chain disruptions remained a key constraint amid material shortages and transport issues, although the deterioration in supplier delivery times eased to a six-month low.

Meanwhile, employment continued to rise, helping underpin firms’ expectations for growth over the coming year.



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Italy Manufacturing Slips Back Into Contraction
The S&P Global Italy Manufacturing PMI fell to 49.6 in August 2026, down from 51.3 in July and below market expectations of 51.5. The reading, though only marginally below the 50.0 threshold, marked the first deterioration in operating conditions since January, with output, new orders and purchasing stocks all weighing on the index. New orders declined for a second consecutive month and at the fastest pace in nearly a year and a half, while export orders also fell. Weaker production requirements led to the first contraction in manufacturing output in seven months, driven by a decline in intermediate goods production. Purchasing volumes also fell, posting their sharpest decline in almost a year. Supply-chain disruptions remained a key constraint amid material shortages and transport issues, although the deterioration in supplier delivery times eased to a six-month low. Meanwhile, employment continued to rise, helping underpin firms’ expectations for growth over the coming year.
2026-09-01
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.
2026-08-03
Italian Manufacturing Sector Growth Eases in June
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.
2026-07-01