The HCOB Italy Manufacturing PMI rose to 49.9 in October 2025, up from 49.0 in September and above market expectations of 49.3. The latest reading signaled a near stabilization in Italy’s manufacturing sector, reflecting rising output and longer supplier delivery times, typically linked to stronger supply-chain activity. However, these gains were offset by declines in new orders, employment, and inventories of purchases, as overall demand weakened amid macroeconomic uncertainty and reduced interest from key trading partners, particularly France and Germany. On the price front, input cost inflation accelerated to its highest level since March, driven by higher raw material and shipping costs. Meanwhile, output prices dropped at the sharpest rate in eight months as firms cut charges to support sales. Encouragingly, business confidence strengthened to a 14-month high, buoyed by optimism about new client acquisitions and future order growth.