Italian Manufacturing Contracts for Seventh Month in October

ROME (Reuters) – Italian manufacturing activity contracted for a seventh month running in October at a faster pace than the month before, per a survey released on Monday. This continues amid persistent declines in output and new orders.

The HCOB Global Purchasing Managers' Index (PMI) for manufacturing in Italy, the euro zone's third-largest economy, fell to 46.9 from 48.3 in September, dropping further below the 50 mark that signifies growth over contraction.

> "Italy's manufacturing sector continues its downward trend. The HCOB PMI registered another decline, reaching 46.9 points – the lowest level since June – indicating accelerating downward momentum," said HCOB economist Jonas Feldhusen.

He added, "This weakness is not only reflective of an ongoing drop in production but also of a deteriorating order situation."

All primary components of the index are below the vital 50 threshold, with the output sub-index decreasing to 46.8 from 47.4 the month before and the new orders indicator declining to 45.1 from 45.7.

The national statistics bureau ISTAT reported last month that Italian gross domestic product stagnated in the third quarter compared to the previous three months, missing forecasts and casting doubt over growth prospects.

Prime Minister Giorgia Meloni's government expects the economy to grow by 1% this year, but after downward revisions to the first two quarters, Economy Minister Giancarlo Giorgetti stated that this goal may be out of reach.