- Prior was 46.6
Key findings:
- Output nearly stabilises, having declined in the 12 months prior to April
- Softest contraction in new orders in over a year
- Cost pressures cool further, but charge inflation intensifies
Comment:
Commenting on the PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:
“This appears to indicate stabilisation, despite US tariff policy. After declining almost continuously since April 2024,
production has now almost reached the 50 mark, signalling that production is roughly at the same level as in the previous
month. The turnaround also seems to be emerging in terms of new orders, where the decline is significantly milder than in
previous months. This aligns with the fact that inventories of pre-production goods were reduced only slightly.
“Given the improved survey results, growth is once again within the realm of possibility. However, after the sector has been
in recession almost continuously since mid-2022, Italian industry will have to work its way out of a rather deep hole. There
will still be a number of obstacles along the way, chief among them the US tariff policy and the threat of intensified
competition from China, which will push even more products onto the European market than before.
“Higher tariffs and uncertainty are weighing on Italian industry, which is reflected in the below-average optimism of
manufacturers. However, a more severe slump in sentiment could well have been expected. The fact that the PMI figures
signal stabilisation rather than a sharp deterioration may have something to do with the fact that industry is still benefiting
from some advance deals designed to circumvent higher tariffs
