Italy: Manufacturing PMI remains entrenched in contractionary terrain in September
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) inched up to 48.3 in September from August’s 48.0. As such, the index remained entrenched below the 50.0 no-change threshold, signaling another deterioration in business conditions in the private sector compared to the previous month.
September’s result was driven by sustained contractions in new orders and production. Moreover, business confidence was the second lowest on record, weighed down by mounting concerns of recession, soaring energy costs and political uncertainty. On the price front, the pace of input cost inflation accelerated for the first time in April due to higher energy and material costs, leading firms to raise their charges at a faster pace.
S&P Global’s Lewis Cooper commented:
“Italy’s manufacturing sector rounded out the third quarter of the year mired in downturn. Output declined at a quicker pace amid a fifth consecutive monthly fall in new work, linked to weak client demand driven in turn by surging prices and heightened uncertainty.”