01.09.202607:59:01UTC+00Italy Manufacturing Slips Back Into Contraction

The S&P Global Italy Manufacturing PMI slipped to 49.6 in August 2026 from 51.3 in July, falling short of market expectations of 51.5. Although only marginally below the neutral 50.0 threshold, the reading signaled the first deterioration in operating conditions since January, as declines in output, new orders, and purchasing activity all weighed on the index.

New orders fell for the second consecutive month and at the fastest rate in nearly eighteen months, with export demand also weakening. Softer production requirements led to the first contraction in manufacturing output in seven months, largely reflecting a downturn in intermediate goods production. Purchasing volumes declined as well, recording their steepest drop in almost a year.

Supply-chain disruptions remained a significant constraint, with material shortages and transport issues persisting, though the lengthening of supplier delivery times eased to its lowest level in six months. At the same time, employment continued to rise, supporting firms’ expectations for growth over the year ahead.