Italian manufacturing sector stuck in slowdown in December, according to PMI

Italian manufacturing activity contracted for the ninth straight month in December, although at a slower pace than the previous month, a survey showed on Thursday, amid persistent declines in output and new orders.

HCOB's global Purchasing Managers' Index (PMI) for the manufacturing sector rose to 46.2 from November's 12-month low of 44.5, remaining well below the 50 mark that separates growth from contraction .

However, it was above a median forecast of 44.9 in a Reuters poll of nine analysts.

“The Italian manufacturing sector remains in a difficult situation at the end of the year. The sector continues to struggle with weak eurozone demand, high energy costs and major problems in the automotive sector,” said HCOB economist Jonas Feldhusen .

The manufacturing production subindex rose to 46.9 from 43.3 the previous month, while the new orders indicator rose to 44.2 from a previous 41.9.

Italian Economy Minister Giancarlo Giorgetti said last month that the euro zone's third-largest economy would likely end 2024 with a growth rate of 0.7%, below the government's official target of 1%, highlighting the ever deeper decline of the industrial sector.