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Italy PMI April 2024

Italy: Manufacturing sector in decline, optimism for future

The HCOB Italy Manufacturing Purchasing Managers’ Index (PMI) fell to 47.3 in April from 50.4 in March. As a result, the index moved below the 50.0 no-change threshold, and signaled a deterioration in manufacturing sector operating conditions compared to the previous month.

April’s PMI was primarily driven by a significant reduction in new orders, marking the sharpest decline so far this year. Additionally, new export orders decreased substantially due to falling demand from European markets. In response to these challenges, manufacturers in Italy reduced their production volumes significantly.

Despite the downturn in output and new orders, April saw a return of cost pressures, with input costs rising for the first time in 15 months. However, firms managed to keep selling prices relatively stable, with some opting to discount prices to stimulate sales. Nevertheless, business sentiment remained optimistic, with firms showing the most positive outlook for future output levels in a year, driven by expectations of improved new orders and economic conditions.

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