FX.co ★ Italy Private Sector Activity Shrinks in March

The S&P Global Italy Composite PMI declined to 49.2 in March 2026 from 52.1 in February, signaling the first contraction in private sector activity since January 2025 and the sharpest downturn since November 2024. The overall weakness was driven by a renewed decline in services activity, alongside a more modest expansion in manufacturing output. A similar pattern was evident in new orders, which also returned to contraction in March. At the same time, employment growth in the private sector largely stalled and outstanding business volumes remained broadly unchanged. On the price front, inflation in both input costs and output charges accelerated, reaching 40- and 37‑month highs, respectively.