Italian Manufacturing Cost Pressures and Input Inflation Eased in June 2024
Overview of June 2024 Italian Manufacturing Sector Trends
Cost Pressures and Supply Chain Disruption
ROME, July 1 (Reuters) - Cost pressures and supply chain disruption in Italy's manufacturing sector eased in June, a survey showed on Wednesday, reflecting signs of de-escalation in the conflict in the Middle East.
Input Cost Inflation
The measure of input cost inflation in the Italian S&P Global Manufacturing Purchasing Managers' Index (PMI) fell to 74.3 from 76.5 in May, posting the first decline this year while remaining at a historically high level.
Output Prices
Output prices also eased for the first time since December, with the sub-index declining to 60.6 from 62.3.
Expert Commentary
"Although the adverse impact of war in the Middle East is still clearly evident in prices and delivery times data, the latest (figures) provide the first signs that things are moving in the right direction for Italian manufacturers," said Eleanor Dennison, economist at S&P Global Market Intelligence.
Inflation and PMI Data
Consumer Price Inflation
Italian consumer price inflation eased to 3.1% in June from 3.2% the month before, preliminary data showed on Tuesday.
Headline PMI and Subindices
The headline PMI, a broader gauge of manufacturing activity, slipped to 52.2 in June from 52.9, remaining above the 50 mark that separates growth from contraction.
A Reuters survey of 11 analysts had pointed to a June reading of 52.4.
The new orders subindex declined to 50.6 from 51.2, while the manufacturing output subindex slipped to 52.8 from 53.2.
Government Economic Outlook
Prime Minister Giorgia Meloni's government in April cut its economic growth outlook to 0.6% for this year and next from previous targets of 0.7% and 0.8% respectively.
The government forecast a 0.8% growth rate for 2028, which would mark six consecutive years of sub-1% growth.
(Reporting by Gavin Jones, editing by Hugh Lawson)
