Italian manufacturing downturn eases in August, survey shows
4:01 am Monday, September 02nd, 2024
ROME (Reuters) – Italian manufacturing activity contracted for a fifth month running in August but at a slower pace than the month before, a survey showed on Monday, suggesting the worst of a long-running factory slump may be over.
The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing in the euro zone’s third-largest economy rose to 49.4 from July’s 47.4.
That left the index below the 50 mark that separates growth from contraction, but it was still the highest reading since March.
HCOB economist Tariq Kamal Chaudhry said Italian industry appeared to be heading for recovery, though the situation remained fragile.
“Companies surveyed reported scaling back production due to sluggish new order intakes and generally weak market conditions,” he said.
The manufacturing output sub-index jumped to 49.1 from 46.5 the month before, while the new orders indicator rose even more steeply to 48.8 from 44.8, though both remained below the key 50 threshold.
The Italian economy expanded by 0.2% in the second quarter from the previous three months, preliminary data from national statistics bureau ISTAT showed in July, following a 0.3% rate in the first quarter.
Most analysts expect similar modest increases in gross domestic product rates through the rest of this year, yielding full-year 2024 growth of between 0.7% and 1%, broadly in line with last year’s 0.9% rate.
(Reporting by Gavin Jones, editing by Hugh Lawson)
