- Prior was 49.9
Key findings:
- Renewed growth in total new orders, supported by improved export sales
- Slight increase in output, but employment and purchasing fall
- Strongest cost inflation in three years
Comment:
Commenting on the PMI data, Nils Müller, Junior Economist at Hamburg Commercial Bank, said:
“November brought a welcome rebound for Italy’s manufacturing sector. The headline PMI climbed back into expansionary territory to 50.6, up from 49.9 in October, marking the strongest improvement since March 2023, though the overall pace of growth remains marginal.
“The headline gain was driven primarily by a renewed increase in new orders, which rose at the fastest rate in more than three-and-a-half years. Export demand provided a notable boost, ending a five-month run of decline and registering its sharpest rise since early 2022. However, production growth lagged behind, with output expanding only slightly and consumer goods makers reporting a drop in activity.
“Despite a notable improvement in order books, manufacturers remained cautious on staffing, opting for dismissals and refraining from replacing voluntary leavers. Purchasing activity also fell, as companies leaned on existing inventories to meet production needs. Supply chain conditions remained strained, with delivery times lengthening moderately. Meanwhile, cost pressures intensified sharply, with input prices rising at the fastest rate in three years, driven by higher raw material costs. While selling prices increased, the pass-through was limited, pointing to margin compression.
“Italian manufacturers stayed optimistic in November, anticipating improved conditions over the next 12 months. Hopes of a rebound in global markets and new customer inflows supported confidence, albeit sentiment eased slightly compared to the previous month. Overall, November’s data signal a fragile return to growth for the Italian manufacturing sector, supported by export-led demand but tempered by persistent cost inflation and cautious hiring.”
