Italian Services Output Growth Hits Six-Month High

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.

The S&P Global Italy Services PMI rose to 50.2 in June 2026, returning to expansion territory after a contraction of 49.4 in the previous month, although it fell short of market expectations of 50.5. It also marked the first reading above the 50 threshold since February, as business activity recorded a renewed increase, supported by new customer acquisitions, tender wins, and generally stronger demand. However, conflict-related disruptions and resulting economic uncertainty were cited as key factors limiting growth. Meanwhile, employment across service providers was broadly unchanged in June, though the current sequence of job creation extended to seventeen consecutive months. On the price front, input cost inflation eased for the first time since the start of the year, while output charges also moderated. Lastly, business expectations continued to improve, lifting confidence among Italian services companies to its highest level since November 2025.

The S&P Global Italy Services PMI edged down to 49.4 in May 2026 from 49.8 in the previous month, but still came in better than market expectations of 49.1. The reading marked the third consecutive month in contractionary territory, as new business declined for the second time in three months and at the fastest pace in eighteen months amid challenging economic conditions, persistent price pressures, and concerns over heightened Middle East tensions. Meanwhile, employment recorded its sixteenth straight month of growth, with the latest data indicating the strongest pace of hiring in three months. On the price front, input cost inflation accelerated to a fourty-month high, primarily due to rising expenses linked to ongoing geopolitical tensions in the Middle East. Looking ahead, service providers in Italy remained cautiously optimistic about activity over the next 12 months. However, overall confidence remained subdued by historical standards.