Italy’s services sector expanded at a slightly faster pace in October, with the S&P Global Italy Services PMI Business Activity Index rising to 52.0 from 51.7 in September. The latest reading marked five consecutive months of growth and returned the index to its long-run trend level.
Service providers reported stronger order books and new customer wins, while new business volumes increased at a solid pace, supported by new contracts and customer acquisitions. Growth in export sales slowed to a minimal rate, though it remained stronger than the average decline recorded so far in 2026.
Employment rose for another month, with job creation picking up slightly from September. Outstanding business also increased for the first time in seven months, prompting firms to add staff despite rising cost pressures.
Input costs climbed for a third consecutive month, reaching their highest level since late 2022. Companies frequently pointed to higher fuel and energy-related expenses linked to the energy crisis stemming from the Middle East conflict. Output prices rose at their fastest pace in 44 months.
Financial and real estate services led growth among subsectors, while commercial and professional services declined. Consumer services and software and communication also recorded increases.
Business confidence for the year ahead improved to its strongest level in 15 months, matching November 2025. However, companies cited economic and geopolitical uncertainty as a constraint on sentiment. The S&P Global Italy Composite PMI Output Index, which combines manufacturing and services data, slipped to 50.8 from 51.0 in September. Data were collected between October 12 and 27.
Sources: Investing.com News.