The S&P Global Italy Services PMI declined to 51.7 in September 2026 from 55.2 in August, coming in below the market forecast of 54.6. The latest reading points to a continued, though slower, expansion in the services sector and marks the weakest pace of growth in three months.
Both activity and new business growth moderated, even as new export orders increased at the fastest rate since May 2024, providing some support to overall demand. Employment rose for the 20th consecutive month, but hiring momentum eased as firms responded to softer demand conditions.
On the price front, input cost inflation accelerated to its highest level since May, driven by rising energy, fuel, transport, wage, and toll expenses. Output charges also increased, with output price inflation reaching its highest level in nearly two and a half years.
Meanwhile, business sentiment strengthened to one of the highest levels in just over a year. Confidence was underpinned by new client acquisitions and expectations of firmer international demand. However, concerns about the broader economic outlook and the impact of higher interest rates continued to temper overall optimism.
