Italy’s September manufacturing PMI climbed to 45.7from 43.6 in August.Economists expected a more modest improvement to 44.0.
Here are the key points from Markit:
- PMI at six-month high, but still comfortably below 50.0
- Output, new orders and employment decrease at slower rates
- Purchasing costs rise for first time in four months
“The PMI ticked up in September largely on the back of slower contractions in output, new orders and employment, indicating an easing in the rate of deterioration of the health of Italy’s manufacturing sector. The headline index nevertheless posted a quarterly average that was virtually unchanged from that registered in the three months to June when official numbers pointed to a 1.9% quarter-on-quarter decrease in goods production. Particular weakness was found in the capital goods category of manufacturing, reflective of businesses’ hesitancy to commit to investment spending in the face of the ongoing economic uncertainty.
“Manufacturers in Italy also suffered on the costs front in September, seeing average purchase prices rise at the fastest rate since April after three months of decline. This proved particularly untimely as firms increased efforts to promote sales through discounting.”