The S&P Global Italy Manufacturing PMI rose to 50.4 in September 2026 from 49.6 in August, beating market expectations of 50. The index’s move back above the 50.0 threshold signaled a marginal expansion in manufacturing activity and marked the seventh improvement in operating conditions over the past eight months.
Nonetheless, the upturn remained fragile. Both output and new orders edged down, as weak domestic and external demand continued to weigh on production and purchasing. Export orders also recorded a modest decline, with elevated geopolitical uncertainty dampening investment and worries about inflation further restraining activity.
Supply-chain strains persisted, reflected in a sharp deterioration in input delivery times amid logistical bottlenecks and shortages of key components, particularly electronics. At the same time, input cost inflation quickened to its fastest pace of the third quarter. Despite these headwinds, employment posted a slight increase, and manufacturers remained optimistic about the outlook for the coming 12 months.
