ITALY DATA: Manufacturing PMI Highest Since Mar '23
The February Italian manufacturing PMI came in below consensus expectations at 48.7 (49.1 cons, 48.5 prior), in contrast to Spain earlier today. This was nonetheless the highest reading since March 2023 (though the index has remained below 50 since then).
Red Sea disruptions were again noted, but seemingly to a lesser extent than in the Spanish survey.
Key notes from the release:
- "New business placed at Italian manufacturers fell moderately in February"..."companies blamed the unfavourable geopolitical climate and weak demand conditions for the latest downturn".
- "Geopolitical issues also contributed to falling new export orders".
- As in January: "Confidence was linked to new client acquisitions and the expectation that the economic and geopolitical climate will improve over the coming year".
- "Shorter delivery times for purchased inputs were reported by firms in February. Vendor performance improved only fractionally, however, as firms continued to report delays due to the disruption in the Rea Sea".
- "The latest data showed input prices falling again"..."a drop in raw material prices led suppliers to revise price lists in February. In response, companies also reduced charges, albeit only marginally".
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