Italian industry 'on the mend' - economist (Il Sole 24 Ore Radiocor) - London, 02 Sep - In August, Italy's purchasing manager's index for the manufacturing sector rose to 49.4 from 47.4 in July, marking the third successive monthly increase in the index although still indicating a deterioration in the health of the sector, according to data released by S&P Global and the Hamburg Commercial Bank.

A reading below 50 signals a contraction in sector activity.

'Italy's industry is on the mend," said Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank. "Although the HCOB PMI for Italy's manufacturing sector remains below the growth threshold at 49.4 points in August, the index has gained two points. Still, this result is good news given the downward trend elsewhere in the eurozone in recent months. However, the situation for the Italian manufacturing industry is far from ideal. Companies surveyed reported scaling back production due to sluggish new order intakes and generally weak market conditions.

'Price developments continue to trouble Italy's industrial sector. Despite a slight dip in August, the latest rise in input costs was nevertheless strong. Companies surveyed attributed the persistent price pressure to higher raw material costs. On a slightly positive note, output prices have also started to climb, allowing firms to pass on some of their increased expenses to customers. However, the wide gap between input and output prices, particularly since the start of the second quarter, underscores the ongoing strain on profit margins.".

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(RADIOCOR) 02-09-24 09:56:42 (0165) 5 NNNN