Increased new orders and production are good for Italian manufacture, which accelerates in August and archives the second consecutive month on the rise. Last month, the Markit/Adaci Purchasing Managers' Index (Pmi) rose to 51,3 points, from 50,4 in July. The figure therefore remains above the 50-point threshold, which marks the border between expansion and contraction, and reaches its highest level since May 2011.
The manufacturing sector represents – according to Istat – about 19% of the Italian productive activity. Output levels rose for the third month in a row, with the sub-index that measures output climbing to a 28-month high of 54,4 points. New orders rose for the second month in a row, driven by stronger foreign demand aimed primarily at consumer goods.
Input prices of manufacturing firms rose for the first time in six months, mostly due to higher commodity prices, although the inflation rate remains below the long-term average, Markit said. “Cost pressures will likely grow in line with commodity demand and will need to be monitored closely,” Markit economist Phil Smith said.
With regard to the Spain, Markit Economics announced that the PMI manufacturing index rose to 51,1 points in August, from 49,8 points in July, exceeding expectations (50,1 points).
