Italy: Manufacturing PMI hits new record-high in May
June 1, 2021
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose to a new series’ high in May, coming at 62.3, above April’s 60.7. Consequently, the index moved further north from the 50-threshold signaling a stronger improvement in business conditions from the previous month.
May’s stellar reading came largely on the back of a record-breaking expansion in new orders, amid surging domestic demand and a significant increase in new export orders, especially from U.S. and China. Against this backdrop, production growth picked up pace and manufacturers increased their staffing levels—at the sharpest rate in series’ history—in a bid to cope with firming client demand. On the price front, persisting supply disruptions and shortages were behind an increase in input costs, with inflation hitting an over 10-year high and prompting firms to hike their selling prices significantly. Lasty, although sentiment eased over the previous month, manufacturers remained optimistic on hopes of solid demand and a sustained economic recovery.
Lewis Cooper, Economist at IHS Markit, said:
"Italy’s manufacturing rebound showed no signs of slowing during May, with PMI data pointing to a fresh record upturn in the health of the sector amid surging sales and a near survey high rate of output growth. […] Nonetheless, the sector posted a stellar performance midway through the second quarter, with growth showing little signs of slowing down. Companies remain optimistic that output will rise further still, and this may well be the case as COVID-19 measures are eased further and the wider economy picks up."
Author: Alexandros Petropoulos,