- Prior 44.5
Italy's manufacturing sector stays in a downturn in August with production and new orders continuing to fall sharply on the month. The added negative development is that job losses were signalled for the first time since August 2020. HCOB notes that:
“The manufacturing recession, which started mid-last year continues to stretch out, extending most likely into the third quarter. The HCOB Manufacturing PMI Index for July registers at 45.4, reflecting a 0.9 index point increase from the previous month.
“Once more, overall orders felt the squeeze, mostly due to overseas demand. The continued slump in purchases of materials is further evidence of the weak demand situation. This trend appears to be exerting influence on the hitherto resilient Italian labour market as well. For the first time since August 2020, manufacturers are trimming their workforce numbers.
“Supply chain issues and high input costs are history now, owing mainly to the global slump in demand. Suppliers' delivery times continue to shorten markedly, while the descent in input costs is presently occurring at a more gradual pace. This state of affairs seemingly confers no exploitable advantage upon enterprises. The surveyed companies divulge an excess of manufactured goods compared to those in demand, thereby exerting detrimental effects on stocks of finished goods.
“It remains remarkable how sanguine producers are about the future, with confidence about prospective output again above its long-term average. Companies are pinning their hopes on a resurgence in goods demand in the upcoming year.”
