- Prior 48.3
The Italian manufacturing sector also saw a deeper contraction in October, with the quickest declines in output and new work being noted since the spring of 2020. S&P Global notes that:
“Manufacturing conditions across Italy continued to deteriorate in October, with the sector falling further into contraction territory amid quicker declines in output and new work.
“Weak demand was a key factor behind firms’ decisions to postpone or cancel purchases, reflected in a marked drop of buying activity and subsequently, a fall in pre-production inventories. Stocks of finished goods increased further, however, as lower sales leave stock unsold in warehouses.
“Poor demand conditions, in addition to easing supply problems, did however help to cool inflationary pressures in October. That said, the rates of both cost and factory gate inflation remain steep by historical standards.
“Business confidence remained weak, despite picking up slightly since September, with poor client demand and high inflation continuing to weigh on expectations as we move towards year end.”