Italy: PMI drop in August points to manufacturing contraction
August 1, 2014
The Markit/ADACI manufacturing Purchasing Managers’ Index (PMI) inched down from 51.9 in July to 49.8 in August and reached the lowest level in 14 months. This is the first time that the index has fallen below the 50-threshold indicating contraction in the manufacturing sector after 13 consecutive months in expansion territory.
According to Markit/ADACI, “the negative reading doesn’t come as too much of a shock as the index has been trending towards 50.0 ever since peaking at a three-year high in April.” In addition, the survey showed that purchasing activity, inventories and employment continued to record weak growth rates in August.
Author: Dirina Mançellari, Senior Economist