For the first time in over two years the manufacturing Italy no longer grows and shrinks below 50 points. TO the PMI index in October elaborated by Markit it fell to 49,2, below the threshold of 50 points, which marks the border between growth and worsening. It hadn't happened since August 2016. In September it was 50.
“Due to the sharp reduction in new orders, responsible for the umpteenth decline in production, the operating conditions of the manufacturing sector worsened in October. In addition to the collapse in new orders, exports have also moved into negative territory,” explains Markit.
Also in October, the index relating toEurozone it fell for the third consecutive month, settling at 52, down sharply from 53,2 in September. In October, according to the note, manufacturing growth collapsed "to its lowest value in 26 months" and there was a "collapse of new orders due to the first contraction in exports in almost five and a half years".
Finally, in October, business optimism “sunk to its lowest level since the end of 2012” and manufacturing firms “expressed widespread concern about developments in protectionist global trade policies, possible higher tariffs and current uncertainties policies.
The conditions of German industry also worsened. Last month the index of Germany it fell for the third consecutive month, to 52,2 from 53,7 in September. "The increase in production in October - reads the note from Markit - was only marginal and the weakest seen since November 2014". Furthermore, production is expected to fall in the next 12 months, highlighting the first sign of "pessimism among producers for four years".
