Italy Services Activity Picks Up in October

The S&P Global Italy Services PMI rose to 52.0 in October 2026 from a three-month low of 51.7 in the previous month, beating market forecasts of 51.5. This marked the fifth consecutive month of expansion and a return to its long-run trend. Activity was supported by stronger new business inflows, particularly from the domestic market, as new contracts and customer wins lifted order books. However, export sales growth moderated to a fractional pace. Employment increased at a slightly faster rate as backlogs of work rose for the first time in seven months, encouraging further recruitment, although job creation remained marginal. On the price front, input cost inflation surged to its highest level in almost four years, largely reflecting energy-related pressures linked to the Middle East conflict. Output price inflation also picked up as firms faced mounting cost pressures. Meanwhile, business confidence strengthened to its highest level since November 2025.

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.