Italian Manufacturing Activity Shows Signs of Slowing Contraction

ROME (Reuters) – Italian manufacturing activity contracted for a fourth consecutive month in July, though at a slower rate than in June, according to a survey released on Thursday.

The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing in Italy, the eurozone’s third-largest economy, rose to 47.4 from 45.7 in June, still below the 50 threshold that indicates growth versus contraction.

This figure surpassed the median forecast of 46.1 from a Reuters survey of 14 analysts.

HCOB economist Tariq Kamal Chaudhry noted, “Italian industry is on a path to recovery.”

The manufacturing output sub-index improved to 46.5, an increase from 44.6, while new orders rose to 44.8 from 42.4 the previous month. Despite these gains, they still fell significantly below the crucial 50 mark in July.

Chaudhry added, “Order intakes at both the total level and from foreign markets are declining sharply, with only a slight easing since June.”

In July, Economy Minister Giancarlo Giorgetti stated that the Italian economy is on track to achieve a government growth target of 1% for 2024. Most analysts project growth between 0.7% and 1%, similar to last year’s 0.9% rate.