Time.news – Italy’s December SME manufacturing index remains broadly positive but drops to 62 points from 62.8 in November, which was an all-time high. The index is above the consensus which was 61.5.
The Italian manufacturing sector continued to record another strong monthly growth. The Ihs Markit institute notes this by communicating the December figure, which remains in good improvement even if down compared to the all-time high of November.
“It is the eighteenth consecutive month of improvement in the health of the sector, which in general was fast and in the fourth quarter marked the highest average PMI since data collection began in 1997 – the report states – the strong performance in December was once again caused by the expansion of manufacturing production and new orders. The first, with a sharp slowdown in growth since November, remained high and higher than that of September and October.
At the same time, the rate of expansion of new orders was the fourth fastest in the survey, decreasing in December very slowly compared to the previous month and remaining faster than that of production. The sample companies attributed the latest growth to strong customer demand. Exports also increased in December, with a rapid rate of expansion, but the slowest in three months. “
Lewis Cooper, Economist of IHS Markit, analyzing the latest data from the survey said: “The Italian manufacturing sector ended the final quarter of 2021 with another strong performance. The PMI remained close to its all-time high in November due to another rapid growth in production and new orders, albeit with slowing monthly growth rates.
That said, the pressure on capacity was once again unprecedented, with companies struggling to cope with the strong pace of sales and current supply chain challenges.
The level of employment has consequently increased significantly. The shortage of material and the rising cost of transportation spilled over into purchasing costs which increased further and dramatically, with companies raising their sales prices to a near record high. That said, the rate of inflation has slowed since November, indicating a decrease in pressure at the end of the year.
Despite the strong performance, Italian manufacturing firms have moderated their forecast regarding next year’s production.
Levels of optimism have reached their weakest since April 2020 and some companies have reported concerns about Covid-19, price pressure and disruption on the supply chain. That said, as 2022 approaches, the sector remains in a very strong position, with few signs of significant decreases in the growth momentum. ”
December Eurozone SME index drops to 58 points
The Eurozone SME index fell to 58 points in December from 58.4 points in November, confirming the consensus that saw it at 58 points.
A figure which remains positive for analysts and which shows that European economic activity is continuing to show signs of recovery, with factories taking advantage of easing supply chain bottlenecks and easier access to raw materials.
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