Italy’s industrial activity beats expectations with sharp February rise
Italy’s manufacturing sector expanded in February after two months of contraction, a survey showed on this week, offering some hope of a near-term economic pick-up.
The Italian HCOB Manufacturing Purchasing Managers’ Index (PMI) rose sharply to 50.6 from January’s 48.1, climbing above the 50-mark that separates growth from contraction.
The sub-indexes for output and new orders both rose above 50 for the first time in three months, standing respectively at 51.5 and 50.8 from 47.1 and 47.4 the previous month.
However, the indicator for new export orders fell to 47.6, indicating contraction for a third month in a row and at a faster pace compared to January’s reading of 48.9
The overall improvement in manufacturing conditions in February “still rests on a fragile foundation,” said Hamburg Commercial Bank AG economist Jonas Feldhusen.
The euro zone’s third-largest economy grew by 0.3 per cent in the fourth quarter of last year from the previous three months, slightly more than expected.
Italy’s government has a full-year growth target of 0.7 per cent for this year after an estimated 0.5 per cent rate in 2025.