Updated January 9th, 2024 at 17:57 IST
Italy's manufacturing contraction moderates in December
The December PMI reading surpassed the median expectation of 44.4 among a Reuters survey of seven analysts.
Italy’s manufacturing: The downturn in Italy's manufacturing sector continued for the ninth consecutive month in December but displayed signs of moderation, according to the latest survey released on Tuesday. The HCOB Global Purchasing Managers' Index (PMI) for Italian manufacturing registered at 45.3 for December, a slight improvement from 44.4 in November. However, this figure remains below the 50-point threshold that demarcates expansion from contraction.
The December PMI reading surpassed the median expectation of 44.4 among a Reuters survey of seven analysts. Tariq Kamal Chaudhry, an economist at HCOB, commented, "Italy's manufacturing sector concludes the year with subdued momentum. Although the PMI uptick to 45.3 offers a marginal reprieve, it doesn't signal an optimistic outlook." Chaudhry further highlighted that many firms attribute the ongoing production decline to enduring weak demand across various sectors.
Italy’s gross domestic product
Breaking down the components, the manufacturing output sub-index increased to 45.4 from 44.1, while the new orders metric improved marginally to 41.4 from 40.6. Both indices, however, continue to indicate contraction as they remain below the 50-point threshold.
Earlier data from December revealed a modest 0.1 per cent expansion in Italy's gross domestic product during the third quarter, following a 0.4 per cent contraction between April and June. The National Statistics Bureau ISTAT has projected a continuation of subdued economic performance in the fourth quarter of the previous year.
(With Reuters inputs)
Published January 2nd, 2024 at 16:13 IST