- Prior 48.1
Key findings:
- Fresh growth in output and new orders, ending two-month run of decline
- Brightest 12-month outlook in just over five years
- Intensification of cost and charge inflation
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“In February, we saw tentative signs of improvement in Italy’s manufacturing sector, but this is not yet a meaningful step
forward. The recent uptick, following two weak months, still rests on a fragile foundation. Only if a more sustained recovery
emerges over the coming months, marked by continuous growth in production and new orders, can we then speak of a
genuine upswing in manufacturing. Until then, the situation remains strained.
“In the latest month, a divergence has appeared between total new orders and export orders. While exports continue to
suffer from the fragile global environment, total orders have edged slightly higher, supported by stronger market interest from
both existing and new clients. The improvement in order intakes could be a factor that has boosted business confidence for
the months ahead, which is now at its highest level since the post‑pandemic recovery. It is possible that deregulation
initiatives from Brussels, such as those in the automotive sector, are contributing to this renewed optimism among
manufacturing firms.
“Input costs facing Italian manufacturers are rising, which could become a problem if the trend seen in recent months
continues. Although cost pressures remain far below the levels of 2022, the Input Cost Index has now reached its highest
level in 40 months and should therefore be taken seriously, especially since companies have also passed on more of these
costs to customers. Raw materials, particularly metals, have been major drivers of increased expenses.”
This article was written by Giuseppe Dellamotta at investinglive.com.
