Italy: Manufacturing PMI deteriorates in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to 48.5 in July from June’s 50.9. July’s result marked the weakest reading since June 2020. As such, the index dropped below the 50.0 no-change mark, signaling a deterioration in business conditions from the previous month.
July’s deterioration was primarily driven by weaker demand, which led to sharp contractions in new orders and production. This prompted firms to moderate their purchasing activity. More positively, both input and output inflation softened. Energy prices remained the main driver of inflation.
S&P’s Lewis Cooper commented:
“The challenging business environment, combined with concerns around the war in Ukraine, and near-term economic outlook were reflected in a notably subdued level of business confidence amongst Italian goods producers, with sentiment amongst the weakest on record.”