Italian industry 'remains in solid decline' - economist (Il Sole 24 Ore Radiocor) - London , 01 Jul - In June, Italy's purchasing managers' index for the manufacturing sector edged up to 45.7 from 45.6 in May as operating conditions again deteriorated "at a solid pace", according to data released by S&P Global and Hamburg Commercial Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

'The Italian industry remains in solid decline," commented Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank.

"The HCOB PMI for the manufacturing sector in Italy hasn't dropped further from the previous month but still shows no signs of recovery at an index value of 45.7. Given the bleak present, it is surprising how optimistic Italian manufacturers are about the future.

'The brief uptick seen in the spring has quickly fizzled out.

Output has significantly dropped compared to the previous month. Additionally, stocks of purchases and inventories of finished goods declined, further highlighting weak momentum.

'The Italian industry continues to grapple with sharply rising prices. Input costs have increased even further compared to the previous month, despite facing declining demand, which is challenging for industrial firms. These higher costs reflect elevated raw material prices and transportation costs, as anecdotal evidence suggests.

Compounding the issue, manufacturers were not able to pass on the additional costs to end customers with output prices shrinking further in June.

AAA-Hob

(RADIOCOR) 01-07-24 10:19:02 (0205) 5 NNNN