December 9, 2022

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Italy July manufacturing PMI 60.3 vs 61.5 expected

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Latest data released by Markit – 2 August 2021

The growth momentum slows in Italy’s manufacturing sector in July but the overall reading remains at an elevated level. There remains a rapid upturn in output and new work, so that’s a positive but capacity and inflation pressures remain severe.

Markit notes that:

“Italy’s manufacturing sector continued its run of strong
growth in July. Momentum waned slightly, however, as
supply delays and capacity pressures impacted factory
production. Nonetheless, the latest upturns in output and
new work were rapid, with panellists noting that looser
COVID-19 restrictions and the reopening of some sectors
had continued to boost client demand.

“Inflationary pressures remained prevalent too in July, with
widespread reports of material shortages and price hikes
at suppliers attributed by respondents to a near record rate
of cost inflation. Greater costs were again passed through
to clients, as average charges rose at a series record pace.

“Firms remain optimistic of higher output in 12 months’ time,
although concerns surrounding the spread of COVID-19 and
the potential for the reintroduction of lockdown restrictions
did weigh heavily on confidence.

“Overall, July data pointed to another stellar performance.
Growth remained close to a record pace, and was hindered
only slightly by ongoing supply constraints and capacity
pressures. Nonetheless, latest IHS Markit estimates suggest
a more than 10% annual increase in Italian industrial
production over the course of 2021.”  

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