The HCOB Italy Composite PMI rose to 53.1 in October, the highest level since March 2024, signaling the strongest expansion of Italy’s private sector in over one and a half years. The improvement was driven by a faster rise in services activity and a renewed uptick in manufacturing output. The services sector grew at the quickest pace in 17 months, supported by resilient domestic demand and a modest rebound in export sales, while manufacturing production returned to mild growth after recent softness. New business inflows rose sharply, led by the services sector, even as external demand remained weak. Employment growth slowed to a marginal pace. On the cost front, input price inflation eased to its lowest level in several months, though firms modestly increased selling prices to protect profit margins amid firmer demand conditions.