Italy’s manufacturing PMI slipped to 49.4 in October 2026 from 50.4 in September, falling short of market expectations of 50.2 and marking its weakest level since January. The decline reflected subdued demand, with new orders decreasing for the fourth consecutive month and output contracting at its fastest pace since the start of the year.
Ongoing geopolitical uncertainty continued to dampen customer demand, while manufacturers scaled back purchasing activity and reduced staffing levels for the first time since July. Firms also ran down inventories, opting to keep leaner stock levels despite continuing supply-chain disruptions. Supplier delivery times lengthened at the sharpest pace in three months.
At the same time, inflationary pressures intensified, reaching a four-month high. Companies were able to pass part of their higher costs on to clients, driving selling-price inflation to its highest level in three months. Although businesses remained broadly optimistic about the outlook for the coming year, overall confidence weakened.
