Economy
Italy's Manufacturing Sector Unexpectedly Contracts in October, PMI Shows
Italy's manufacturing activity fell back into contraction in October as the S&P Global PMI dropped to 49.4 from 50.4 in September, missing analyst expectations, while cost pressures mounted amid Middle East supply chain disruption.
Photo: Forextime.com / Wikimedia Commons (CC BY 2.0). Photo shows a stock market concept, not an Italian factory.
Italy's manufacturing activity fell back into contraction in October, a survey showed on Monday, while cost pressures continued to mount.
The S&P Global Manufacturing Purchasing Managers' Index for the euro zone's third-largest economy declined to 49.4 in October from 50.4 in September, below the 50 mark that separates growth from contraction. A Reuters survey of analysts had pointed to a reading of 50.2.
The manufacturing output indicator fell to 47.3 from 49.1, its lowest reading since January, while the subindex for new orders stood at 47.8, down from 49.4 and below the 50 threshold for a fourth month in a row.
Employment also slipped into contraction, with the indicator falling to 49.3 from 50.9, signalling lower job levels for the first time in three months.
On the inflation side, input and output prices both accelerated, to four-month and three-month highs respectively, amid ongoing supply chain disruption caused by the conflict in the Middle East.
The weak factory data followed Friday's figures showing Italy's annual inflation rate jumped to 5.6% in October, while its economic growth stagnated in the third quarter.
Source: Reuters
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