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)
Comments