Italy: Manufacturing PMI rises in August, remains below threshold
The HCOB Italy Manufacturing Purchasing Managers’ Index (PMI) improved to 49.4 in August from 47.4 in July. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer decline in manufacturing-sector operating conditions compared to the previous month.
The modest improvement was primarily driven by softer declines in output, new orders, purchasing activity and input stocks. Export orders also continued to decline but at a slower pace. Moreover, staffing levels increased for the first time since April, and backlogs of work were reduced.
Meanwhile, business confidence rebounded to a three-year high in August from July’s seven-month low, driven by optimistic demand forecasts and hopes for improved economic conditions. This optimism, combined with a slight cooling in cost pressures, led firms to increase their charges for the first time since February 2023, reflecting the first pass-through of costs to customers in nearly a year and a half.