Italy: Manufacturing PMI records worst reading since January 2021 in March
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 55.8 in March, down from February’s 58.3. March’s result marked the worst performance since January 2021. As such, the index remained above the 50 no-change threshold, signaling a continued, albeit weaker improvement in business conditions from the previous month.
Slipping growth of output and new orders dragged down the Manufacturing PMI in March. Both output and new orders fell to 15-month lows due to supply disruptions, shortages of materials, and flagging demand linked to the economic fallout from Russia’s ongoing invasion of Ukraine. Meanwhile, input cost inflation hit a three-month high, leading firms to hike output prices at the joint-fastest rate on record. Firms remained optimistic but sentiment dropped to a two-year low due to the economic costs of the war in Ukraine, difficulties in sourcing supplies and elevated inflation.