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The S&P Global Italy Services PMI slipped to 49.4 in May 2026 from 49.8 in April, though it still surpassed market expectations of 49.1. The index remained in contractionary territory for the third consecutive month, as new business fell for the second time in three months and at the fastest rate in a year and a half. This weakness was attributed to challenging economic conditions, persistent price pressures, and mounting concerns over escalating tensions in the Middle East.
In contrast, employment continued to expand for the sixteenth consecutive month, with the latest survey indicating the strongest pace of job creation in three months.
On the price front, input cost inflation accelerated to a forty‑month high, driven largely by higher expenses linked to ongoing geopolitical tensions in the Middle East.
Looking ahead, Italian service providers remained cautiously optimistic about activity over the next 12 months. Nevertheless, overall business confidence stayed muted by historical standards.
