Finance
Italian manufacturing returns to growth in February, PMI shows
Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: March 2, 2026
Quick Summary
Italy’s manufacturing PMI rose to 50.6 in February, signaling expansion after two months of contraction. Output and new orders improved, though export orders declined. The recovery remains fragile amid uneven external demand.
Italy’s Manufacturing Sector Returns to Growth in February as PMI Rises Above 50
Italy’s Manufacturing PMI Signals Economic Recovery
PMI Rises Above Contraction Threshold
ROME, March 2 (Reuters) - Italy's manufacturing sector expanded in February after two months of contraction, a survey showed on Monday, offering some hope of a near-term economic pick-up.
The Italian HCOB Manufacturing Purchasing Managers' Index (PMI) rose sharply to 50.6 from January's 48.1, climbing above the 50-mark that separates growth from contraction.
Sub-Indexes Indicate Broad-Based Improvement
The sub-indexes for output and new orders both rose above 50 for the first time in three months, standing respectively at 51.5 and 50.8 from 47.1 and 47.4 the previous month.
Export Orders Remain a Weak Spot
However, the indicator for new export orders fell to 47.6, indicating contraction for a third month in a row and at a faster pace compared to January's reading of 48.9
Expert Commentary on Manufacturing Conditions
The overall improvement in manufacturing conditions in February "still rests on a fragile foundation," said Hamburg Commercial Bank AG economist Jonas Feldhusen.
Broader Economic Context
The euro zone's third-largest economy grew by 0.3% in the fourth quarter of last year from the previous three months, slightly more than expected.
Italy's government has a full-year growth target of 0.7% for this year after an estimated 0.5% rate in 2025.
(Reporting by Antonella Cinelli, editing by Gavin Jones and Toby Chopra)
Key Takeaways
- •Manufacturing PMI climbed to 50.6 in February from 48.1 in January, indicating renewed growth.
- •Sub‑indices for both output (51.5) and new orders (50.8) rose above 50, the first such reading in three months.
- •New export orders fell to 47.6, marking a third consecutive month of contraction.
- •Italy’s GDP grew 0.3% in Q4 2025 and is projected to reach 0.7% for full‑year 2025, suggesting cautious optimism for the economic outlook.
Frequently Asked Questions about Italian manufacturing returns to growth in February, PMI shows
1What happened to Italy's manufacturing sector in February?
Italy's manufacturing sector expanded in February, ending two months of contraction as indicated by a rise in the PMI.
2What is the significant change in the Italian Manufacturing PMI?
The Italian Manufacturing PMI rose to 50.6 in February from 48.1 in January, moving above the growth threshold of 50.
3How did output and new orders perform according to the latest PMI?
Output rose to 51.5 and new orders to 50.8, both moving above 50 for the first time in three months.
4Did new export orders increase or decrease in February?
New export orders decreased further to 47.6, showing continued contraction for the third consecutive month.
5What is Italy's government growth target for this year?
Italy's government has set a full-year growth target of 0.7% for this year.
