Italian manufacturing downturn deepens in September, PMI shows
3:58 am Tuesday, October 01st, 2024
ROME (Reuters) – Italian manufacturing activity contracted for a sixth month running in September and at a faster pace than the month before, a survey showed on Tuesday, amid declines in output and new orders.
The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing in the euro zone’s third-largest economy declined to 48.3 from August’s 49.4, sinking further below the 50 mark that separates growth from contraction.
The result was below a median forecast of 49.0 in a Reuters survey of nine analysts.
“The situation in Italy’s manufacturing sector remains grim. While the headline index saw a slight improvement in August, it has now dropped again in September, remaining firmly in recessionary territory,” said HCOB economist Jonas Feldhusen.
“The global downturn in manufacturing activity, which has worsened in the third quarter, is clearly impacting Italian manufacturers,” he said, citing competition from abroad, high interest rates and prices among the factors dampening demand.
The manufacturing output sub-index decreased to 47.4 from 49.1 the month before, while the new orders indicator declined even more steeply to 45.7 from 48.8.
National statistics bureau ISTAT said last month that Italy’s 2023 economic growth was weaker than previously estimated, but also revised down the budget deficit and public debt as a proportion of output.
Italy is targeting 1% economic growth this year and 1.2% in 2025 and has revised down its deficit goals as a proportion of gross domestic product (GDP) for both this year and next, sources told Reuters.
(Reporting by Angelo Amante, Editing by Hugh Lawson)
