Italy Services Sector Contracts for First Time Since 2024

2026-04-07 08:05 By Czyrill Jean Coloma 1 min. read

The S&P Global Italy Services PMI slipped to 48.8 in March 2026 from 51.0 in the previous month, defying market expectations of 52.3.

This marked a return to contraction territory for the first time since November 2024, as output declined due to fewer events following the Winter Olympics, generally soft demand conditions, and rising international uncertainty.

Similarly, new business contracted for the first time in over a year, with the pace of decline the sharpest since November 2024.

Meanwhile, employment levels were broadly unchanged from February, as limited hiring was offset by job cuts elsewhere.

On the price front, input costs surged to a more than three-year high, reflecting higher wage pressures and increased costs for raw materials, energy, and fuel, largely linked to the ongoing Middle East conflict.

Finally, business confidence fell to a seven-month low, as service providers pointed to a challenging economic outlook and heightened uncertainty tied to geopolitical tensions.



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Italy Services Sector Contracts for First Time Since 2024
The S&P Global Italy Services PMI slipped to 48.8 in March 2026 from 51.0 in the previous month, defying market expectations of 52.3. This marked a return to contraction territory for the first time since November 2024, as output declined due to fewer events following the Winter Olympics, generally soft demand conditions, and rising international uncertainty. Similarly, new business contracted for the first time in over a year, with the pace of decline the sharpest since November 2024. Meanwhile, employment levels were broadly unchanged from February, as limited hiring was offset by job cuts elsewhere. On the price front, input costs surged to a more than three-year high, reflecting higher wage pressures and increased costs for raw materials, energy, and fuel, largely linked to the ongoing Middle East conflict. Finally, business confidence fell to a seven-month low, as service providers pointed to a challenging economic outlook and heightened uncertainty tied to geopolitical tensions.
2026-04-07
Italy Services Activity Growth Weakens
The HCOB Italy Services PMI fell to 52.3 in February 2026 from 52.9 in the previous month, though still marginally above market expectations of 52. New business growth eased compared with the previous month, despite being supported by a renewed increase in export sales. Meanwhile, employment continued to increase amid new business and diminished signs of spare capacity, with hiring activity hitting a seven-month high. On the price front, input cost inflation reached a three-month peak, driven by higher wages and rising transport, energy, fuel, and business services costs. Output prices edged up to a seven-month high, continuing an upward trend that has persisted for almost four and a half years. Looking ahead, service providers expressed more positive expectations for activity over the next year, citing anticipated new business, including wins from new clients. While the level of optimism aligns broadly with the 2025 average, it remains notably below the historical trend.
2026-03-04
Italy Services Activity Picks Up in January
The HCOB Italy Services PMI rose to 52.9 in January 2026 from a fourth-month low of 51.5 in the previous month, beating market forecasts of 51.4. The pickup in activity lifted the headline index back above its historical trend and extended the current growth sequence to fourteen months. Output increased despite slower growth in new orders amid a sharper decline in export sales. Additionally, employment continued to rise, with firms hiring across a wide range of roles, though the pace of job creation was marginal. Backlogs of work fell slightly again, suggesting that capacity is broadly aligned with current workloads. Regarding prices, input cost inflation eased to a three-month low, even as staffing and energy expenses rose further. However, output charge inflation accelerated to a six-month high. Lastly, business expectations weakened for a second consecutive month, reaching a five-month low amid concerns over competitive pressures and subdued economic prospects.
2026-02-04