Italian private sector optimistic for 2026 growth

Italian private companies are showing renewed confidence, expecting higher business activity and record profit forecasts for the coming year, driven by investment, AI adoption, and market expansion.

According to the latest S&P Global Italy Business Outlook survey, private sector firms in Italy are increasingly optimistic about the next 12 months. The survey’s headline net balance rose to +28% in October, up from +24% in June, marking one of the most positive readings in the eurozone after Ireland. Manufacturers showed the strongest growth expectations, with +38% predicting higher output, while services firms also increased confidence to +25%.

Profit growth forecasts hit a four-year high, with a net balance of +17%, as companies anticipate softer cost pressures and stronger pricing power. Investment intentions are also rising, with more firms planning to implement new technologies, expand research and development, and adopt artificial intelligence. Employment plans, however, remain stable despite these growth expectations.

Despite global uncertainties, including geopolitical tensions and competition from China, Italian companies appear ready to pursue expansion and innovation, positioning the country’s private sector as a front-runner in the eurozone for 2026.