FX.co ★ Italy Services Sector Expands Most in Over 3 Years

The S&P Global Italy Services PMI rose to 55.2 in August 2026 from 52.5 in July, surpassing market expectations of 53.6. This signaled the strongest expansion since April 2023, underpinned by the fastest increase in new business in nearly two and a half years, driven by firmer domestic demand, new client acquisitions, and the launch of new projects. Export sales also grew, recording their fastest rise since October, although the overall improvement in demand remained largely domestically driven.

Employment continued to increase, while backlogs of work fell for the fifth consecutive month. On the price front, input cost inflation stayed elevated, reflecting higher energy, fuel, commodity, and business services costs. However, output price inflation eased to its lowest level in eight months.

At the same time, business confidence weakened to its lowest point since May, as firms grew more cautious about the external environment. Nonetheless, many companies remained optimistic about the year ahead, citing recent customer gains and planned investments as key sources of confidence.