Italy: Manufacturing PMI moderates in June to two-year low
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 50.9 in June, down from May’s 51.9. June’s result marked the weakest reading since June 2020. As a result, the index remained above the 50.0 no-change mark, pointing to a softer improvement in business conditions from the previous month.
The manufacturing PMI declined due to new orders contracting at the sharpest rate in over two years. Orders were weighed on by heightened economic uncertainty and rising prices. This suggests a deteriorating economic panorama for Italy. More positively, input and output inflation softened slightly from record highs.
S&P’s Joe Hayes commented on an increasingly business outlook:
“Surveyed firms have become more concerned about the outlook for their businesses. The level of confidence fell to its lowest level since March 2020 in June, when Italy entered its first lockdown period at the start of the pandemic.”