Italy's Manufacturing Downturn Eases In September

Italy's Manufacturing Downturn Eases In September

Italy's manufacture sector contracted at the slowest pace in six months in September, data from a survey by Markit Economics and ADACI showed Monday.

The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector increased to 45.7 in September from 43.6 in August, and hit the highest level in six months. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth.

Production in the manufacturing sector decreased for the twelfth consecutive month in September, and the rate contraction was marked. The slump in production reflected a further decline in new business, though at the slowest rate in six months.

Firms reduced their workforces for the fifteenth time in the past sixteen months in September, as a number of businesses tried to align capacity with production requirements.

Factory gate prices decreased further during the month, owing to lower demand and strong competitive pressures. In contrast, input costs facing Italian manufacturers increased during the month.