Italy's PMI Falls To 49.0

Italy’s manufacturing PMI fell to 49.0 in October from 50.70 in September.

Markit’s Purchasing Managers’ Index is a commonly used survey to measure overall business conditions before official stats come out.

Any figure below 50 indicates the sector is contracting.

Here are the key points from Markit:

  • Weakness on order front leads to job cuts as well as lower output
  • Export growth dips to 22-month low
  • Fastest decrease in backlogs of work for 18 months

Markit economist Phil Smith said: “The manufacturing PMI resumed its worrying slide seen since May after having ticked up slightly in September. Falling back below 50.0, the index points to Italy’s manufacturing sector returning to contraction.”

He added: “The manufacturing PMI resumed its worrying slide seen since May after having ticked up slightly in September. Falling back below 50.0, the index points to Italy’s manufacturing sector returning to contraction.”

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