Italy: PMI virtually unchanged in October
November 2, 2016
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) decreased marginally from 51.0 in September to 50.9 in October. The index thus remained above the 50-threshold that separates expansion from contraction in the manufacturing sector.
October’s result mainly reflected weaker expansion in output and new orders. The more moderate pace of growth in both new orders and output was driven by slowing market demand. As for the external sector, new export orders grew at the slowest rate in more than three-and-a-half years. In addition, manufacturers’ purchasing activity decreased, contrasting September’s expansion, and backlogs of work also fell. Regarding price developments, input prices increased at the sharpest pace in 15 months, most likely reflecting higher prices for metals, while output charges diminished for the tenth consecutive month.
Phil Smith, Economist at IHS Markit, added that, “the manufacturing sector remains in a soft patch, with the headline PMI little-changed since September and well below its average seen during the first half of the year. Indeed, a number of factors point to weakness in underlying demand.”