The S&P Global Italy Composite PMI increased to 52.5 in July from 50.8 in June, indicating the strongest expansion in private-sector output since November 2025. The improvement was driven by stronger momentum in the services sector, which helped offset continued weakness in manufacturing. At the composite level, new business increased for the second consecutive month, with the pace of growth accelerating to the fastest rate so far this year despite another decline in manufacturing order books. Private-sector employment continued to rise in July, extending the growth trend seen throughout 2026, with the pace of job creation reaching its strongest level since June 2025. Meanwhile, both input cost and output price measures pointed to the mildest inflationary pressures since February.