- Prior 58.3
Widespread material shortages led to slower output growth in Italy's manufacturing sector, as new orders also grew at the slowest pace since December 2020. Of note, uncertainty due to the Russia-Ukraine war weighed on sales according to panelists. Inflation pressures also continue to rise, with the latest uplift the quickest since December last year. S&P Global notes that:
"Italian goods producers battled with ongoing supply issues and shortages in March, which hampered the latest upturn in production. The rate of output growth was the weakest since December 2020, with survey respondents noting that issues sourcing inputs had curtailed production. Additionally, the war in Ukraine reportedly dampened demand in March, as the rate of expansion in new work slowed to a 15-month low. Where companies did see output rise, this was attributed in part to clearing backlogs.
"The crunch on supply chains was also reflected in more intense inflationary pressures in March, as input prices rose at the fastest pace for three months amid surging material costs, transport fees, energy bills, supply issues and the war in Ukraine. In response, factory gate charges were raised at the joint-fastest pace on record.
"Overall, March data point to manufacturers feeling the combined bite of input shortages and conflict in Ukraine, which weighed heavily of the performance of the sector. Firms remain upbeat towards output over the next 12 months, but inflationary pressures and geopolitical uncertainty weighed heavily on sentiment, which moderated to a two-year low."