Latest data released by Markit - 2 November 2021
- Prior 59.7
In one of the standouts among the region, Italian manufacturing activity picked up strongly last month as output rises steeply amid the quickest uplift in new orders in four months. Supply disruptions are still a problem though, pushing average lead times lengthened to a near record level while inflation pressures continue to climb. Markit notes that:
"Italy's manufacturing sector recorded another stellar performance during October, opening the final quarter of the year with a near record improvement in conditions amid further steep rises in output and new orders.
"Supply delays remained severe, however, adding further to inflationary pressures and capacity constraints. Backlogs of work rose at the quickest pace since the series began 19 years ago, with firms blaming material shortages and a lack of available staff, as well as strong demand.
"These supply constraints undoubtedly held the sector back in October, with many goods producers noting that they were unable to produce some orders due to missing inputs. This was also reflected in firms' expectations towards output over the year ahead, with sentiment moderating to a threemonth low and concerns of supply disruptions and surging price pressures moved closer to the forefront of company thinking.
"The sector remains in good stead overall, however, with the loss of output growth momentum mainly reflecting these issues, whilst sales pipelines remain strong. But, with demand for inputs rising across the globe, we could see supply constraints have a more significant impact on the performance of Italy's manufacturing sector before the end of the year."
