Italy PMI January 2018

Italy

Italy: Manufacturing sector starts year on a strong note

February 1, 2018

The IHS Markit manufacturing Purchasing Managers’ Index (PMI) came in at an almost seven-year high of 59.0 in January, above December’s 57.4. 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 17 consecutive months.

January’s result came on the back of robust expansions in output, new orders and exports. Growth in new orders rose at one of the fastest paces in almost 18 years, buttressed by stronger domestic and export demand. Demand from European trading partners and the U.S. was particularly strong. This led to the strongest expansion in production in almost seven years and prompted businesses to expand their workforces markedly. However, backlogs of work continued to increase at a solid pace, signaling growing pressure on manufacturing capacity. In terms of price developments, due to rising capacity pressures and higher prices for raw materials, input costs rose sharply. This was reflected in output prices rising at the strongest pace in seven years. Lastly, optimism towards future production remained elevated.

Paul Smith, Director at IHS Markit, commented:

“Italy’s manufacturing sector delivered a barnstorming performance during January […]. Bulging order books in recent months have primarily reflected strong international demand for high-end Italian manufactures, but January data pointed to a growing contribution from within Italy itself.”

Italy Investment Forecast


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 January 2018 1

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 contracts again in July

    September 10, 2019

    Industrial contracted 0.7% in July on a month-on-month, seasonally-adjusted basis, following June’s revised 0.3% drop (previously reported: -0.2% month-on-month).

    Read more

  • Italy: Operating conditions firmly in contractionary terrain in August

    September 2, 2019

    The IHS Markit manufacturing Purchasing Managers’ Index (PMI) edged up to 48.7 in August from 48.5 in July.

    Read more

  • Italy: Inflation inches up in August

    August 30, 2019

    Consumer prices increased 0.4% month-on-month in August (previously reported: +0.5% month-on-month), following July’s flat reading, according to revised data released by the National Statistical Institute (ISTAT) on 16 September.

    Read more

  • Italy: Second estimate confirms stagnation in Q2

    August 30, 2019

    GDP growth was flat in the second quarter over the previous period in seasonally- and working-day adjusted terms, according to a second estimate released by Italy’s Statistical Institute (ISTAT) on 30 August.

    Read more

  • Italy: Business sentiment weakens in August

    August 28, 2019

    The National Institute of Statistics (Istat)’s composite business confidence indicator (Clima di Fiducia delle Imprese Italiane, IESE)—which covers the manufacturing, construction, market services and retail sectors—fell to 98.9 points in August from July’s 101.2 points, which had marked the best result in nine months. August’s reading came on the back of a broad-based deterioration in all the sectors covered by the index.

    Read more

More news

Search form