Italy's manufacturing sector returned to marginal growth in September, with the S&P Global Italy Manufacturing PMI rising to 50.4 from 49.6 in August and exceeding the 50.0 market expectation. The index moved above the 50.0 threshold separating expansion from contraction, marking the seventh improvement in operating conditions in the past eight months. The recovery remained fragile, however, as output and new orders edged lower amid subdued domestic and overseas demand. Export orders also declined modestly, while geopolitical uncertainty discouraged investment and inflation concerns constrained activity. Supply-chain conditions worsened, with input delivery times deteriorating sharply because of logistical disruptions and shortages of key components including electronics. Input-cost inflation accelerated to its strongest pace of the third quarter. Employment continued to rise slightly, and manufacturers remained optimistic about the outlook for the next 12 months.