ITALY DATA: PMI manuf: Firms' confidence improves, but other details disappoint

Italy manufacturing PMI came in 1.2 points above the Bloomberg consensus (picking up 1.7 points from November) but remaining notably below 50 (and October's print) at 46.2. It seems as though confidence has improved but the rest of the press release is far from positive.

• "Further reductions in output and new orders contributed to the downturn. Although softening, rates of contraction in production and new sales remained strong. Meanwhile, companies cut employment, input buying and stock levels as the period of retrenchment was extended. Nonetheless, firms were more upbeat in their expectations for the coming year, with the level of confidence the highest since August."
• "Anecdotal evidence from panellists suggested the fall was due to weakness in key sectors, including automotives, and subdued export demand."
• "Unfavourable demand conditions and muted cost pressures led to a further reduction in selling prices in the final month of 2024, as firms sought to boost sales. The fall in factory gate charges was only fractional, however, and the slowest since September."
• "Destocking activity at Italian goods producers continued, as both pre- and post-production inventoried were depleted at quicker rates in December. In fact, sustained drops in new orders led firms to lower their stocks of purchases at one of the fastest rates on record (since June 1997)."