FX.co ★ Italy Manufacturing Sector Growth Hits Four-Year High

Italy’s S&P Global Manufacturing PMI rose to 52.9 in May 2026, up from 52.1 in April and surpassing market expectations of 52.0. This was the strongest expansion in the sector since April 2022, supported by robust demand as clients built up safety stocks in response to shortages and anticipated price increases. New orders grew at one of the fastest paces in four years, prompting manufacturers to raise both production and purchasing activity—the latter reaching its highest level since April 2022—to reinforce buffer inventories against potential supply chain disruptions. Although employment growth eased, backlogs of work increased for the first time in nearly four years. Price pressures also intensified, with input cost inflation hitting a four-year high and output charge inflation reaching its highest level in three-and-a-half years. Business confidence edged up as well, reflecting optimism about the outcome of ongoing sales negotiations and expectations of a more supportive economic environment.