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Italy May manufacturing growth slows amid shortages, weak demand -PMI
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ROME (Reuters) -Italy’s manufacturing sector grew at the slowest pace for a year-and-a-half in May, a survey showed on Wednesday, with
ROME (Reuters) -Italy’s manufacturing sector grew at the slowest pace for a year-and-a-half in May, a survey showed on Wednesday, with business hit by material shortages and weak client demand.
The S&P Global Purchasing Managers’ Index (PMI) for Italian manufacturing came in at 51.9, down from 54.5 in April but still above the 50 mark that separates growth from contraction – the 23rd straight month of expansion.
The May index level fell short of a median forecast of 53.5 in a Reuters survey of 15 analysts.
The new orders sub-index dropped to 47.4 from 52.5, the first sub-50 reading since November 2020.
The knock-on effect of the Ukraine conflict has hit the economic prospects of countries throughout the euro zone.
On Tuesday, statistics bureau ISTAT said Italy’s economy grew 0.1% in the first quarter from the previous three months, revising up a preliminary estimate for a 0.2% contraction.
(Reporting by Angelo Amante, editing by Gavin Jones and Catherine Evans)
The Purchasing Managers' Index (PMI) is an economic indicator that reflects the prevailing direction of economic trends in the manufacturing and service sectors.
New orders refer to the total number of orders received by manufacturers for products that have not yet been produced, indicating future production activity.
Economic growth is an increase in the production of goods and services in an economy over a period of time, typically measured as the percentage increase in real GDP.
Material shortages occur when the supply of raw materials needed for production is insufficient to meet demand, often leading to delays and increased costs.
Weak demand in manufacturing can lead to reduced production levels, layoffs, and lower economic growth as companies adjust to decreased consumer interest.
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