Italy's manufacturing sector remained in contraction for the tenth consecutive month in January 2025, with the HCOB PMI edging up slightly to 46.3 from 46.2 in December, but falling short of the 46.8 forecast.
Italy manufacturing: prices down, confidence up
Demand remained weak, with new orders declining more sharply. While production volumes contracted at a slightly slower pace, input purchasing continued to fall as businesses sought to reduce inventories. Job losses continued, though at a slower rate. Input prices rose for the second consecutive month, reaching the strongest level since August 2024, but manufacturers responded by cutting output prices at the sharpest rate since March 2024 to maintain competitiveness.
Italian factory confidence surges
Looking ahead, business confidence improved, reaching its highest point since August, surpassing the long-run average, and driven by optimism about international political stability and new business opportunities.
