Italy: PMI declines to three-month low in May
June 1, 2016
The Markit/ADACI manufacturing Purchasing Managers’ Index (PMI) dropped from 53.9 in April to 52.4 in May, which marked a three-month low. Despite the decrease, the index remains above the 50-threshold that separates expansion from contraction in the manufacturing sector.
May’s result mainly reflected slower growth rates in output, new orders and exports. Stocks of finished goods decreased slightly in May as they were partially used to fulfill orders. Furthermore, employment grew at a slower rate than in April, while backlogs of work remained broadly unchanged. Markit/ADACI added that, “the PMI continued to signal growth of Italy’s manufacturing sector in May. However, the index sank to its second-lowest level in the past 15 months. Also of note was the re-emergence of cost inflation in May which, although only weak, ended a run of nine straight months of falling input prices”