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ROME (Reuters) – Italian manufacturing activity contracted for a seventh month running in October and at a faster pace than the month before, a survey showed on Monday, amid persisting declines in output and new orders.
The HCOB Global Purchasing Managers’ Index (PMI) for manufacturing in the euro zone’s third-largest economy fell to 46.9 from September’s 48.3, sinking further below the 50 mark that separates growth from contraction.
“Italy’s manufacturing sector continues its downward trend. The HCOB PMI registered another decline, reaching 46.9 points – the lowest level since June – indicating accelerating downward momentum,” said HCOB economist Jonas Feldhusen.
“This weakness is not only reflective of an ongoing drop in production but also of a deteriorating order situation,” he said.
All the main components of the index came in below the key 50 threshold, with the output sub-index decreasing to 46.8 from 47.4 the month before and the new orders indicator declining to 45.1 from a previous 45.7.
National statistics bureau ISTAT said last month that Italian gross domestic product stagnated in the third quarter compared with the previous three months, missing forecasts and casting a shadow over growth prospects.
Prime Minister Giorgia Meloni’s government is officially forecasting the economy to expand by 1% this year, but following downward revisions to the first two quarters Economy Minister Giancarlo Giorgetti said that the goal may be out of reach.
(Reporting by Angelo Amante; Editing by Toby Chopra)