Italian Manufacturing Activity Contracts for Sixth Consecutive Month
ROME (Reuters) – Italian manufacturing activity contracted for a sixth month running in September, with a faster pace than the previous month, as output and new orders declined.
The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing in the euro zone’s third-largest economy fell to 48.3 from August’s 49.4, continuing to sit below the 50 mark that separates growth from contraction. This result was also below the median forecast of 49.0 in a Reuters survey of nine analysts.
Jonas Feldhusen, an economist at HCOB, commented, “The situation in Italy’s manufacturing sector remains grim. While the headline index saw a slight improvement in August, it has now dropped again in September, remaining firmly in recessionary territory.”
He noted that the global downturn in manufacturing activity, which has worsened in the third quarter, is significantly impacting Italian manufacturers. Factors like competition from abroad, high interest rates, and rising prices are contributing to diminished demand.
The manufacturing output sub-index decreased to 47.4 from 49.1 the month before, while the new orders indicator fell sharply to 45.7 from 48.8.
National statistics bureau ISTAT reported last month that Italy’s economic growth for 2023 was weaker than previously estimated. They also revised down the budget deficit and public debt as a proportion of output.
Italy is aiming for 1% economic growth this year and 1.2% in 2025 while revising down its deficit goals relative to gross domestic product (GDP) for both this year and next, according to sources.
Comments (0)