The S&P Global Italy Services PMI rose to 52.0 in October 2026 from a three-month low of 51.7 in the previous month, beating market forecasts of 51.5. This marked the fifth consecutive month of expansion and a return to its long-run trend. Activity was supported by stronger new business inflows, particularly from the domestic market, as new contracts and customer wins lifted order books. However, export sales growth moderated to a fractional pace. Employment increased at a slightly faster rate as backlogs of work rose for the first time in seven months, encouraging further recruitment, although job creation remained marginal. On the price front, input cost inflation surged to its highest level in almost four years, largely reflecting energy-related pressures linked to the Middle East conflict. Output price inflation also picked up as firms faced mounting cost pressures. Meanwhile, business confidence strengthened to its highest level since November 2025.