Italy manufacturing PMI declines to 46.9 amid continued contraction

The HCOB Italy Manufacturing PMI dropped to 46.9 in October 2024, down from 48.3 in September and falling well short of market expectations, which had anticipated a rise to 48.6.

Italy manufacturing PMI declines to 46.9 amid continued contraction

This marks the seventh consecutive month of contraction in Italian manufacturing activity. New orders continued to decline sharply, with companies reporting a significant drop in export demand due to reduced business inflows from the U.S., the Middle East, and other Eurozone countries, particularly in the auto sector. As a result, output levels fell despite a decrease in outstanding work and reports of improved efficiency.

Job cuts accelerate as input costs decline, factories remain optimistic

Consequently, firms cut jobs at the fastest rate in five months. On the pricing front, lower demand for input goods led to a decline in purchasing costs for the first time since March, prompting manufacturers to lower output prices for a second consecutive month. Factories expressed optimism about future output levels over the coming year.