- Prior 48.5
It's just a marginal improvement to January as Italy's manufacturing sector remains in contraction for now. Output and new orders were seen declining again, both down for an eleventh month running. HCOB notes that:
“Italy's industry is stuck in a rut with no signs of improvement. The HCOB PMI for the manufacturing sector in February hasn't budged much from last month's figure. Sitting at 48.7, there's little room for optimism. What's worrying is the accelerated drop in output compared to the previous month. The numbers remain in the shrinking range, extending the period of decline to almost a year.
“The industry can't complain about high inflation and low employment. Despite a substantial increase in the index value compared to the previous month, input prices continued to decline in February. When combined with an equally sharp drop in output prices, it signals persistent weakness in demand. The Employment Index saw a significant jump from the previous month, now showing growth for the first time since last September. It remains to be seen whether the recent dynamic in the jobs market is just a one-off or the start of a trend.
“Despite ongoing disruptions in the Red Sea, suppliers’ delivery times appear to be shortening, indicating the depth of demand weakness and sending a less-than-ideal signal. Additionally, backlogs of work are decreasing at a rapid pace. There is not much on the horizon that could flip the situation anytime soon.
“Looking ahead, the situation in the Italian industry is a bit of a mixed bag. On the one hand, companies are suffering from declining orders overall and internationally. On the other hand, expectations about future output are above the historical average. The surveyed manufacturers expressed hope for an economic recovery and more stable geopolitical conditions, among other factors.”
