FX.co ★ Italy Manufacturing Growth Slows to Four-Month Low

The S&P Global Italy Manufacturing PMI slipped to 51.3 in July 2026 from 52.2 in June, falling short of market expectations of 52.3 and posting its weakest reading in four months. The loss of momentum largely reflected waning support from earlier stockpiling associated with the Iran conflict, as new orders fell again amid subdued demand. Firms cited ongoing geopolitical uncertainty and persistent inflationary pressures as key headwinds.

Export orders declined for the first time in five months, and overall manufacturing output grew at a slower pace. Longer supplier delivery times continued to signal supply-chain disruptions but nonetheless made a positive contribution to the headline PMI. Backlogs of work saw their steepest drop so far this year, while both employment and purchasing activity softened. At the same time, input cost pressures eased, even as business confidence worsened.