Italy: PMI gains some ground in June
July 3, 2017
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose to 55.2 in June from 55.1 in May. The index thus moved further above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
June’s result mainly reflected stronger growth in new orders and output. New orders grew for the tenth consecutive month, with the pace of growth accelerating compared to May, while new export orders rose at the fastest pace in over two years thanks to robust external demand. This translated into a strong rate of job creation, although despite this backlogs of work rose, albeit marginally. Regarding price developments, input prices continued to rise, but at a slower pace than in the prior month. This led to a further rise in output prices.
Phil Smith, Economist at IHS Markit, added that, “The Italian manufacturing sector continued its recent solid performance into June. At 55.2, the PMI remained below April’s recent peak (56.2), but its average over the second quarter as a whole was the best seen in more than six years.”