Italian Manufacturing Activity Declines for Ninth Month

ROME (Reuters) – Italian manufacturing activity contracted for the ninth consecutive month in December, though at a slower pace compared to the previous month, according to a recent survey.

The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing rose to 46.2 from November’s 12-month low of 44.5. This figure remains significantly below the 50 threshold that indicates growth versus contraction. Additionally, it exceeded the median forecast of 44.9 from a Reuters survey of nine analysts.

HCOB economist Jonas Feldhusen remarked, “The Italian manufacturing sector remains in a challenging situation at the end of the year. The sector continues to struggle with weak demand from the eurozone, high energy costs, and significant issues in the automotive industry.”

The manufacturing output sub-index increased to 46.9 from 43.3 the previous month, while the new orders indicator also saw an uplift, rising to 44.2 from 41.9.

Italian Economy Minister Giancarlo Giorgetti mentioned last month that the euro zone’s third-largest economy is expected to conclude 2024 with a growth rate of 0.7%, falling short of the official government target of 1%, due to the persisting slump in the industrial sector.