Italy PMI: Strong Report, But A Miss Vs Expectations

Italy logged its 6th consecutive month of positive Manuf PMI in Dec, at 52.8 vs 51.5 in Nov, "with output growth quickening amid a renewed upturn in order book volumes" per IHS Markit, but this was below expectations of 53.5.

• As with Spain earlier, new export orders impressed amid "looser COVID-19 related restrictions in key markets", while domestic demand remained weak.
• Also similar to the Spanish report was supply chain delays leading to higher cost push inflation, and in response, output costs rose at a 2-year high (though "remained modest").
• The report noted Italy manuf job growth at a 2.5 year high.
• Forward prospects were positive: "the level of positive sentiment climbed to a three-month high, with positive news of a vaccine, improved sales and hopes of a robust economic recovery all cited in anecdotal evidence as reasons to be optimistic."