Italy: Manufacturing PMI improves in October
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 61.1 in October, up from September’s 59.7. As a result, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
The uptick came on the back of stronger client demand, with the fastest increase in new orders since June recorded in October. Moreover, production rose steeply again, despite persistent supply disruptions leading to material shortages and logistical issues. Accordingly, input costs increased at the third highest rate on record. Consequently, factory gate prices rose at one of the fastest paces on record. Meanwhile, pressures on capacity led to robust job creation, which rose at the fastest pace in three months.
On the outlook, Lewis Cooper, economist at IHS Markit, noted:
“The sector remains in good stead overall, […] with the loss of output growth momentum mainly reflecting [supply] issues, whilst sales pipelines remain strong. But, with demand for inputs rising across the globe, we could see supply constraints have a more significant impact on the performance of Italy’s manufacturing sector before the end of the year.”