Italy: Manufacturing conditions improve at faster pace in January
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose to 55.1 in January from 52.8 in December, marking the strongest reading since March 2018. Therefore, the index moved further above the crucial 50-threshold, indicating improving conditions in the manufacturing sector.
The improvement in the headline PMI came on the back of a faster increase in production and new orders, and steady job creation. Moreover, export orders expanded solidly amid stronger demand from Europe and America. On the price front, input costs rose at the quickest pace in close to four years amid supply shortages and higher transport prices. Consequently, firms raised their output prices at the fastest pace since late 2018, although the pace of increase was only modest. Lastly, business sentiment remained positive, thanks to hopes of a global economic recovery.
Commenting on the release, Lewis Cooper, economist at HIS Markit, stated:
“Although the sector appears to be powering through further COVID-19 restrictions, the pandemic continued to wreak havoc on supply chains in January.”