Italy manufacturing PMI beats expectations, output price inflation strongest since August 2015

Italy manufacturing production growth accelerates in November on strong increases in output and new orders. Italy Markit/ADACI manufacturing PMI for November was up to 52.2 from 50.9 in October and higher than 51.3 expected by analysts. PMI was at the highest level since June.

Consumer goods producers registered the steepest rise in output, followed by capital goods firms and makers of intermediate goods respectively. Solid growth was seen in both domestic demand and from external sources. November saw the continued depletion of inventories among manufacturers.

Worth noting was the marked strengthening of cost pressures which led to the first increase in manufacturers’ output charges in almost a year. Input price rise was the steepest since early-2012 with the rate of inflation the strongest since August 2015.

“After the recent lull, goods producers look to be ending the year on a firmer footing," said Phil Smith, Economist at IHS Markit.

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