Italy: here too the PMI is negative, especially in manufacturing

With the European indices negative, Italy could not be positive, but it could have been worse.

The HCOB Italy Composite PMI fell to 49.7 in June 2023 from 52 in the previous month, indicating a renewed contraction in the country's private sector, albeit a slight one, after five straight months of growth .

A sharp deterioration in manufacturing (PMI to a three-year low of 43.8 vs. 45.9 in May) more than offset modest growth in services (PMI to a four-month low of 52.2 vs. 54). New orders followed a similar pattern, with the services sector posting growth, while sales fell at manufacturers of goods. Furthermore, both categories recorded a decrease in backorders, another sign of a slowdown.

In terms of prices, the inflation rate was the lowest in nearly three years, allowing companies to cut costs for the first time since February 2021.

If we consider the manufacturing PMI instead, the situation is much less positive

We are not at the levels we saw yesterday for Germany, where the drop was to 38, therefore at a much lower value than ours, but, in any case, these are not negative values ​​and, above all, we are in the third month of successive contraction.

Italy therefore finds itself in a situation similar to that of the other European countries, with a pessimism of economic operators that becomes strong and consolidated if we consider the manufacturing sector. Unfortunately confused energy policies, high interest rates and a situation that does not seem conducive to economic development are making themselves felt on growth. It won't be long before they speak up on employment as well.

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The article Italy: PMI is negative here too, especially in manufacturing comes from Scenari Economici .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/italia-anche-qui-il-pmi-e-negativo-soprattutto-nella-manifattura/ on Tue, 25 Jul 2023 10:15:53 +0000.