Italian Services Output Growth Hits Six-Month High

The S&P Global Italy Services PMI fell to 51.7 in September 2026 from 55.2 in August, below the expected 54.6, signalling a continued but slower expansion in the service sector and the weakest growth in three months. Activity and new business growth both eased, although new export business rose at the strongest pace since May 2024, supporting overall demand. Employment continued to increase for a 20th consecutive month, but recruitment slowed as firms faced softer demand. On the price front, input cost inflation accelerated to its highest since May, driven by higher energy, fuel, transport, wages and tolls, while output price inflation rose to its highest in almost two-and-a-half years. Meanwhile, business confidence improved to one of the highest levels in just over a year, supported by new customer wins and expectations of stronger international demand, although concerns over economic conditions and higher interest rates continued to weigh on optimism.

The S&P Global Italy Services PMI rose to 55.2 in August 2026 from 52.5 in July, beating market expectations of 53.6. This marked the strongest expansion since April 2023, supported by the fastest increase in new business in almost two-and-a-half years, reflecting stronger domestic demand, new client acquisitions, and new project starts. Export sales also increased, reaching their fastest pace since October, though the overall improvement in demand remained domestically focused. Employment continued to rise, while outstanding business declined for a fifth month. On the price front, input cost inflation remained elevated, driven by higher energy, fuel, commodity and business service costs, while output price inflation eased to its lowest in eight months. Meanwhile, business confidence weakened to its lowest since May amid concerns over the external environment, despite firms citing new customer wins and planned investment as reasons for optimism into next year.

The S&P Global Italy Services PMI rose to 52.5 in July 2026 from 50.2 in June, comfortably beating market expectations of 51.3 and signaling the strongest expansion in business activity since January. Growth was supported by the fastest increase in new orders this year, driven by stronger demand, new service offerings, successful client acquisition, and advertising efforts. Employment growth accelerated to a 13-month high and was among the strongest seen in more than two years, while the decline in outstanding business eased, pointing to improving capacity conditions. On the price front, input cost inflation remained elevated but slowed to its weakest pace since February, whereas output price inflation picked up. Meanwhile, business confidence softened slightly but continued to signal a positive outlook.