Italy: Manufacturing PMI falls back into contraction territory
November 3, 2014
The Markit/ADACI manufacturing Purchasing Managers’ Index (PMI) fell to 49.0 in October. The result was down from the 50.7 recorded in September and marked the lowest level since May 2013. As a result, the index is now back below the 50-threshold indicating contraction in the manufacturing sector.
October’s result came on the back of a drop in manufacturing output and new orders. In addition, employment levels fell for the second time in the last three months while input prices now sit at the lowest level in five months. However, export sales continued to grow, even though at a slower pace. According to Markit/ADACI, “[a]necdotal evidence suggested firms were being impacted by subdued demand conditions both at home and across European markets.
Author: Dirina Mançellari, Senior Economist