Italy: PMI hits six-month high in December
January 2, 2017
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose from 52.2 in November to a six-month-high of 53.2 in December. The index thus moved further above the 50-threshold that separates expansion from contraction in the manufacturing sector.
December’s result mainly reflected a stronger expansion in output and new orders. The pace of growth in both new orders and output was the highest in six months and was fueled by stronger demand in both domestic and external markets, with new export orders expanding at the fastest pace since April. In addition, manufacturers’ purchasing activity increased and more jobs were created, which in turn contributed to a decrease in backlogs of work. Regarding price developments, input prices increased at the sharpest pace since February 2012, most likely reflecting higher prices for row metals, and led to the second rise in output charges in almost a year.
Phil Smith, Economist at IHS Markit, added that, “the manufacturing sector in Italy ended 2016 with an upturn in performance […]. More jobs were also created, but with price pressures mounting, firms will need to be increasingly resourceful to keep pace with demand while controlling costs.”