Italian Manufacturing Activity Declines for 10th Consecutive Month

ROME (Reuters) – Italian manufacturing activity contracted for a 10th month running in January, maintaining a similar pace to the previous month, according to a survey released on Monday. This downturn is attributed to ongoing declines in output and new orders.

The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing registered at 46.3 in January, a slight uptick from December’s 46.2, yet still well below the 50 mark that delineates growth from contraction.

HCOB economist Jonas Feldhusen remarked, “The start of the year was disappointing yet predictable.” He highlighted that high energy costs and sluggish economic performance from trading partners like Germany, France, and China are contributing factors to this decline.

The manufacturing output sub-index increased to 47.4 from 46.9, while the new orders indicator decreased to 42.8 from 44.2 the previous month.

Feldhusen added, “Signs of improvement are scarce, as both domestic and foreign order books are plummeting.”

Preliminary data from last week indicated that the Italian economy stagnated in the fourth quarter of the previous year, raising concerns for its outlook this year.