The seasonally adjusted S&P Global PMI for the Italian manufacturing sector came in at 48.5 points in December, up slightly from 48.4 in November, indicating the sixth consecutive deterioration in the health of the sector. We recall, in fact, that a figure below 50 points indicates a contraction, while a higher value indicates an expansion. The Bloomberg consensus predicted a value of 48.6 points.
Lewis Cooper, Economist at S&P Market Intelligence, said: “The Italian manufacturing sector was mired in a contraction phase in December, with production and orders still declining, albeit at a slower pace. In particular, the data showed a reduction in inventories of both purchases and finished products for the first time since May, highlighting the efforts underway by companies to optimize inventories in a context of economic weakness.
Some positive news instead comes from business confidence, “which has strengthened to a maximum of seven months. Participating companies cited hope for a recovery in demand and expected investments. That said, with the sector still in contraction territory in the final month of 2022, the PMI data suggests there are still challenges ahead as 2023 rolls off.”