Italy: Manufacturing PMI posts worst reading since April 2020 in June
The HCOB Manufacturing Purchasing Managers’ Index (PMI) dropped to 43.8 in June from May’s 45.9. Consequently, the index moved further below the 50.0 no-change threshold, signaling a sharper deterioration in business conditions in the manufacturing sector compared to the previous month. It marked the worst reading since April 2020.
June’s result was driven by sharper contractions in output and new orders. Moreover, purchasing activity was scaled back at a pronounced pace amid significant destocking. Additionally, employment growth lost steam. Meanwhile, supply constraints eased further, which led input prices to fall at the fastest pace since April 2009 and businesses to reduce output prices. Lastly, business confidence dropped to the lowest level in six months.