Italy PMI August 2019

Italy

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. The index thus remained entrenched below the crucial 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has been for 11 months in a row.

The marginal improvement in the headline PMI came mainly on the back of a softer decline in output. That said, both output and new orders fell for the thirteenth month in a row, as both domestic and external demand faltered. New export orders were especially weighed down by contracting demand from Germany. Consequently, manufacturers reduced staff, although at a marginal pace overall, while backlogs of work declined again. Meanwhile, input costs increased after two months of reduction, due to rising prices for raw materials and higher input costs. Consequently, firms raised their output prices, albeit slightly. Lastly, business confidence continued to dip but remained in optimistic terrain, supported by a positive outlook on customer numbers and investments in new products.

Commenting on the outlook, Amritpal Virdee, an economist at IHS Markit, remarked:

“Whilst the downturn in part reflects a challenging global economic environment, especially in key export markets such as Germany, the eleventh successive monthly deterioration in manufacturing conditions is also symptomatic of the need for broader structural changes.”

FocusEconomics Consensus Forecast panelists see fixed investment growing 2.1% in 2019, which is unchanged from last month’s estimate. For 2020, the panel expects fixed investment to increase 1.8%.


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 August 2019

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: 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: Inflation inches up in August

    August 30, 2019

    Consumer prices jumped 0.5% month-on-month in August, following July’s flat reading, according to provisional data released by the National 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