Italy’s manufacturing contracts at steepest rate this year, PMI shows
4:53 am Monday, December 02nd, 2024
ROME (Reuters) – Italian manufacturing activity contracted for an eighth month running in November and at its fastest pace this year, a survey showed on Monday, with persisting declines in output and new orders.
The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing fell to 44.5 from October’s 46.9, dropping further below the 50 mark that separates growth from contraction and posting its lowest reading since November last year.
“The Italian manufacturing sector is plummeting … the situation is serious,” said HCOB economist Jonas Feldhusen.
All the main components of the index came in below the key 50 threshold, with the output sub-index decreasing to 43.3 from 46.8 the month before and the new orders indicator plunging to 41.9 from a previous 45.1.
“The subdued orders situation, both domestic and abroad, is the main driver for the poor performance in November. Orders are collapsing,” Feldhusen said.
National statistics bureau ISTAT said last month that industrial output in the euro zone’s third-largest economy had fallen more than expected in September compared to the previous month and was negative in the third quarter.
Giorgia Meloni’s government is officially forecasting economic expansion of 1% this year, but analysts say the target looks far out of reach after growth stagnated in the third quarter, according to a preliminary estimate in October.
ISTAT will issue final data for third quarter gross domestic product at 1000 GMT.
(Reporting by Angelo Amante; Editing by Gavin Jones; Editing by Toby Chopra)
