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Manufacturing production growth slows in Italy in October

Staff Writer | November 3, 2016
Italy’s manufacturing sector continued to grow at the start of the fourth quarter, although rates of expansion in output and new orders were slower than in September and only modest overall.
Italy factory
Italy   Markit Italy Manufacturing PMI
Meanwhile, a further rise in sector employment contrasted with a decline in buying levels, with the latter contributing to a faster drop in inventories.

On the cost front, input prices showed the sharpest increase for 15 months, though the burden generally fell on goods producers as factory gate prices decreased further.

October’s headline Markit Italy Manufacturing Purchasing Managers’ Index (PMI) was at 50.9, little-changed from September’s 51.0 and pointing to another marginal improvement in the overall health of the manufacturing economy.

Output continued to rise during October, in line with the trend seen since January 2015, although the rate of expansion eased since September to only a modest pace overall. Capital goods producers remained the best performers.

There was also only weak growth in manufacturers’ order books, with reports from a number of panellists highlighting slowing market demand. Furthermore, new export orders increased at one of the weakest rates seen over the past three-and-ahalf years.

Nevertheless, manufacturing employment continued to rise during October. The rate of job creation was solid and the fastest for three months.