ITALY / EuroWire / — Italy’s manufacturing sector expanded at its fastest pace since April 2022 in May, with the S&P Global Manufacturing Purchasing Managers’ Index rising to 52.9 from 52.1 in April. The reading remained above the 50.0 threshold that separates expansion from contraction and marked a fourth consecutive month of growth for the country’s goods-producing sector, according to the latest monthly survey of factory purchasing managers.
The May reading showed a further strengthening in operating conditions after April’s gain, supported by faster growth in factory output and a renewed rise in new orders. Output increased at a stronger pace than in the previous month, while new business returned to expansion after a softer earlier reading. The survey indicated that demand conditions improved across parts of the manufacturing economy, although cost and supply pressures remained prominent.
The PMI survey also showed that firms increased purchasing activity as order books improved and supply concerns persisted. Input buying rose as manufacturers sought to secure materials, while supplier delivery times lengthened further. Backlogs of work were supported by stronger inflows of new business, and the employment component indicated continued hiring in the sector during the month.
Manufacturing gains broaden
The headline PMI at 52.9 compared with 52.1 in April and 49.2 in May 2025, underscoring a clear improvement from conditions reported a year earlier. The index’s latest level was the highest in more than four years, reflecting gains across output, orders and purchasing activity. The data followed a sequence of readings above the 50.0 mark, indicating that Italy’s manufacturing economy remained in expansion during the spring.
Price pressures continued to feature strongly in the May survey. Manufacturers reported higher input costs, with inflation in purchasing prices intensifying during the month. The pressure was linked in the survey to supply chain disruption, higher transport costs and increases in energy and raw material expenses. Firms also raised selling prices, extending the pass-through of higher operating costs to customers in the manufacturing sector.
Costs and supply pressures
Delivery delays worsened in May as supply chains remained under strain. Longer lead times affected manufacturers’ ability to receive inputs on schedule, contributing to a rise in pre-production inventories and purchasing activity. The survey pointed to stockpiling as one factor behind stronger demand for inputs, while manufacturers continued to report pressure from logistics disruption and supplier constraints across parts of the production chain.
The latest PMI data place Italy among the stronger manufacturing performers in the euro area for May, as the country’s factory sector continued to expand while cost pressures intensified. S&P Global’s monthly indicator showed the sector building on April’s recovery, with the headline reading at its highest level since April 2022. The figures provide a timely measure of manufacturing conditions before the release of official industrial production data.