Italy PMI June 2018

Italy

Italy: Manufacturing sector gains steam for the first time since January in June

July 2, 2018

The IHS Markit manufacturing Purchasing Managers’ Index (PMI) came in at 53.3 in June, above May’s 52.7. The index thus moved further above the crucial 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has been for nearly two years.

June’s result came on the back of faster growth in output and new orders, which gained speed from May’s over one-and-a-half-year low pace of expansion. Growth in output and new orders was helped by stronger demand, especially from key European trading partners. Backlogs of work continued to decline, as companies hired staff at the fastest pace in three months; companies have created new jobs for three-and-a-half years. In terms of price developments, input costs rose at the quickest pace since February due to higher prices for steel and other raw materials. This translated into rising output prices, whose pace of increase nevertheless decelerated to a nine-month low. Lastly, business confidence was the lowest in over five years, although it remained in positive territory.

Paul Smith, Director at IHS Markit, commented:

“The improvements in growth to broad trend rates will raise hopes that the sector will now settle into a steady expansionary rate following the sharp slowdown in sector performance seen since the start of the year.”

FocusEconomics Consensus Forecast panelists see fixed investment growing 2.5% in 2018, which is unchanged from last month’s estimate. For 2019, the panel expects fixed investment to increase 2.1%.


Author: Massimo Bassetti, Economist

Sample Report

Looking for forecasts related to PMI in Italy? Download a sample report now.

Download

Italy PMI Chart


Italy PMI June 2018

Note: IHS Markit Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 point to a contraction.
Source: IHS Markit.


Italy Economic News

  • Italy: Industrial production shows further signs of life in February

    April 10, 2019

    Industrial output rose 0.8% in February on a month-on-month, seasonally-adjusted basis, following January’s stronger 1.9% jump.

    Read more

  • Italy: Manufacturing sector in dire state in March

    April 1, 2019

    The IHS Markit manufacturing Purchasing Managers’ Index (PMI) dipped to 47.4 in March from February’s 47.7, marking the worst reading in close to six years.

    Read more

  • Italy: Inflation stable in March

    March 29, 2019

    According to provisional data released by the National Statistical Institute (ISTAT) on 29 March, consumer prices rose 0.3% month-on-month in March, following February’s 0.2% increase.

    Read more

  • Italy: Business confidence regains some lost ground in March

    March 27, 2019

    The National Institute of Statistics’ (Istat) composite business confidence indicator (Clima di Fiducia delle Imprese Italiane, IESE)—which covers the manufacturing, construction, market services and retail sectors—rose to 99.2 points in March from February’s revised 98.2 points (previously reported: 98.3 points), which had marked the worst reading since February 2015. March’s reading was the result of improving sentiment in the construction and market services sectors, which more than offset weaker sentiment in the manufacturing sector.

    Read more

  • Italy: Consumer confidence moves further down in March

    March 27, 2019

    The consumer confidence index released by the National Institute of Statistics (ISTAT) declined to 111.2 points in March from February’s 112.4 points, marking the worst result since August 2017. March’s deterioration was broad-based.

    Read more

More news

Search form