Italy: PMI rises in November
December 1, 2016
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose from 50.9 in October to a five-month-high of 52.2 in November. The index thus moved further above the 50-threshold that separates expansion from contraction in the manufacturing sector.
November’s result for Italy mainly reflected stronger expansion in output and new orders. The pace of growth in both new orders and output was the highest in five months and was fueled by stronger demand in both domestic and external markets, with new export orders continuing to rise. In addition, manufacturers’ purchasing activity increased, contrasting October’s soft decline, and backlogs of work grew. 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 first rise in output charges in almost a year.
Phil Smith, Economist at IHS Markit, added that, “after the recent lull, goods producers look to be ending the year on a firmer footing […]. However, the emergence of stronger cost pressures has become a focal point.”