October 01, 2024 07:51 GMT
ITALY DATA: Subdued Demand Weighs on Sep Manufacturing PMI
ITALY DATA
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In contrast to Spain, the Italian manufacturing PMI was weaker than expected at 48.3 (vs 49.0 cons, 49.4 prior). The index has been in contractionary territory since March, consistent with the subdued development of industrial production this year.
The inflationary implications were somewhat similar to Spain though, with raw material prices increasing input costs, but competitive pressures limiting passthrough to output charges.
Key notes from the release:
- “Central to the deterioration was the subdued demand environment. Both total and export orders fell at accelerated and marked rates in September. Muted demand conditions also weighed on manufacturers' production decisions”.
- “According to firms, better availability of raw materials had also helped suppliers complete their orders in a timely manner”.
- “Manufacturers in Italy continued to recruit new workers in September, with factory employment numbers raised for a second month in a row”.
- “Input prices meanwhile rose only marginally in September”… “The main source of pressure on operating expenses stated by panellists was raised raw material prices.”
- “Cooling cost pressures encouraged manufacturers to make cuts to their charges, after hikes in August. The decrease in output charges reflected a combination of promotional activity and efforts to remain competitive”.
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