- Prior 50.6
Key findings:
- Softer expansions in output and new orders
- Sharp spike in cost inflation fails to deter growth in purchasing and stocks
- Supply chains conditions decline at strongest rate since October 2022
Comment:
Eleanor Dennison, Economist at S&P Global Market Intelligence, said:
“The impact of war in the Middle East is being felt by manufacturers in Italy, particularly in their supply chains as lead times on inputs lengthened to the most notable degree seen October 2022 amid reports of shortages and logistical challenges.
“Prices data showed a steep intensification of cost pressures, as firms widely reported paying more for raw materials, transportation and energy. The rate of cost inflation shot up to its highest level in three-and-a-half years, triggering a sharp increase in average charges.
“In anticipation of further supply chain disruption and price increases, manufacturers purchased additional inputs for the first time in well over three years, leading to the first increase in stocks in eight months.
“Although raised uncertainty was signalled by a rapid drop in confidence levels, production volumes and order books increased for a second month in a row, albeit at softer and only marginal rates. Positively, firms also continued to add new staff.”
This article was written by Giuseppe Dellamotta at investinglive.com.
