Italy: PMI weakens slightly in January
February 1, 2017
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) decreased from 53.2 in December to 53.0 in January. The index nevertheless remained above the 50-threshold that separates expansion from contraction in the manufacturing sector.
January’s result mainly reflected slightly slower growth rates in output and new orders. Production nevertheless continued to grow at a healthy pace, supported by expanding new orders, which in turn benefited from higher export orders. In addition, more jobs were created and confidence increased from December. Regarding price developments, input prices increased and led to the third consecutive rise in output charges.
Phil Smith, Economist at IHS Markit, added that, “the manufacturing sector started 2017 where it left off at the end of 2016 […]. The two developments of note were the pick-up in sector job creation to a nine-month high and the ongoing intensification of goods producers’ cost pressures, with the latter being a culmination of rising global raw material prices and the euro’s recent depreciation against the US dollar.”