Finance
Italy's manufacturing contracts at steepest rate this year, PMI shows
Published by Global Banking & Finance Review®
Posted on December 2, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 2, 2024
2 min readLast updated: January 28, 2026
Italy's manufacturing PMI dropped to 44.5 in November, marking the steepest contraction this year. Persistent declines in output and new orders are driving this downturn.
ROME (Reuters) - Italian manufacturing activity contracted for an eighth month running in November and at its fastest pace this year, a survey showed on Monday, with persisting declines in output and new orders.
The HCOB Global Purchasing Managers' Index (PMI) for manufacturing fell to 44.5 from October's 46.9, dropping further below the 50 mark that separates growth from contraction and posting its lowest reading since November last year.
"The Italian manufacturing sector is plummeting ... the situation is serious," said HCOB economist Jonas Feldhusen.
All the main components of the index came in below the key 50 threshold, with the output sub-index decreasing to 43.3 from 46.8 the month before and the new orders indicator plunging to 41.9 from a previous 45.1.
"The subdued orders situation, both domestic and abroad, is the main driver for the poor performance in November. Orders are collapsing," Feldhusen said.
National statistics bureau ISTAT said last month that industrial output in the euro zone's third-largest economy had fallen more than expected in September compared to the previous month and was negative in the third quarter.
Giorgia Meloni's government is officially forecasting economic expansion of 1% this year, but analysts say the target looks far out of reach after growth stagnated in the third quarter, according to a preliminary estimate in October.
ISTAT will issue final data for third quarter gross domestic product at 1000 GMT.
(Reporting by Angelo Amante; Editing by Gavin Jones; Editing by Toby Chopra)
The main topic is the contraction of Italy's manufacturing sector, as indicated by the PMI falling to 44.5 in November.
A PMI below 50 indicates a contraction in the manufacturing sector, suggesting decreased economic activity.
Italy's economic growth forecast of 1% is now uncertain due to the manufacturing sector's decline and stagnation in the third quarter.
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