Finance
Italy's Manufacturing Remains Stuck in Downturn in January, PMI Shows
Published by Global Banking & Finance Review®
Posted on February 3, 2025
1 min readLast updated: January 26, 2026
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Quick Summary
Italian manufacturing activity contracted for the 10th month in January, with a PMI of 46.3. Elevated energy costs and weak trade partners are key factors.
Italian Manufacturing Activity Continues to Decline in January
ROME (Reuters) - Italian manufacturing activity contracted for a 10th month running in January and at roughly the same pace as the month before, a survey showed on Monday, amid persisting declines in output and new orders.
The HCOB Global Purchasing Managers' Index for manufacturing came in at 46.3 in January, up only marginally from December's 46.2 and remaining well below the 50 mark that separates growth from contraction.
"The start of the year was disappointing yet predictable," said HCOB economist Jonas Feldhusen.
Elevated energy costs and weak economic activity in trade partners like Germany, France and China were contributing to the downturn, he said.
The manufacturing output sub-index rose to 47.4 from 46.9, but the new orders indicator fell to 42.8 from 44.2 the month before.
"Signs of improvement are scarce, as both domestic and foreign order books are plummeting," Feldhusen added.
The Italian economy stagnated in the fourth quarter of last year, preliminary data showed last week, casting a shadow over prospects for this year.
(Reporting by Angelo Amante; Editing by Christina Fincher)
Key Takeaways
- •Italian manufacturing contracted for the 10th month in January.
- •PMI for manufacturing was 46.3, indicating continued contraction.
- •Energy costs and weak trade partners contribute to the downturn.
- •Output sub-index slightly improved, but new orders fell further.
- •Italian economy stagnated in the last quarter of the previous year.
Frequently Asked Questions about Italy's manufacturing remains stuck in downturn in January, PMI shows
1What was the PMI for Italian manufacturing in January?
The HCOB Global Purchasing Managers' Index for manufacturing came in at 46.3 in January, up only marginally from December's 46.2.
2How long has Italian manufacturing been in decline?
Italian manufacturing activity contracted for a 10th month running in January.
3What factors are contributing to the downturn in manufacturing?
Elevated energy costs and weak economic activity in trade partners like Germany, France, and China are contributing to the downturn.
4What does the new orders indicator show for January?
The new orders indicator fell to 42.8 from 44.2 the month before, indicating a decline in demand.
5What does the manufacturing output sub-index indicate?
The manufacturing output sub-index rose to 47.4 from 46.9, but overall signs of improvement are scarce.
