01.09.202508:14:33UTC+00Italian Factory Activity Rebounds Slightly in August

The HCOB Italy Manufacturing PMI increased to 50.4 in August 2025, up from 49.8 in July, exceeding market expectations of 49.8. This latest data indicates that the manufacturing sector is experiencing growth once more, after 16 months of contraction, albeit modestly, driven by the most significant increase in production volumes in nearly two and a half years. There was a slight rise in order book volumes for the first time in almost a year and a half, with growth primarily driven by domestic demand despite ongoing challenges in exports. Employment and purchasing activity continued to decline, although at a slow and marginal rate. Supplier delivery times extended once again, a situation attributable to persistent supply chain disruptions, notwithstanding weak demand. On the pricing front, there was a slight easing in input costs due to reduced energy prices and favorable exchange rates. Output prices decreased as well, but only moderately. Lastly, the level of optimism dropped below its long-term average, reaching its lowest point in four months.