The S&P Global Italy Services PMI rose to 52.0 in October 2026, up from a three-month low of 51.7 in September and above market expectations of 51.5. This signaled a fifth consecutive month of expansion and a return to the index’s long-run trend. Growth in activity was driven by stronger inflows of new business, especially from the domestic market, as fresh contracts and new customers boosted order books. In contrast, growth in export sales slowed to only a marginal pace.
Employment rose at a slightly faster rate, supported by the first increase in backlogs of work in seven months, which encouraged firms to hire, although overall job creation remained modest. On the price front, input cost inflation accelerated to its highest level in almost four years, largely due to energy-related pressures associated with the Middle East conflict. Firms responded by raising their own charges, and output price inflation also strengthened in the face of mounting cost pressures. Meanwhile, business confidence improved, reaching its highest level since November 2025.
