In August, manufacturing activity in Italy continued to grow for the seventh consecutive month but at the slowest pace since April, confirming a weak recovery after three years of recession.
The Purchasing Managers Index (PMI), edited by Markit/ADACI, fell to 53,8 last month from 55,3 in July, below market estimates but above the 50 level that separates growth from contraction. The government expects the economy to grow by 0,7% this year after performing negatively in the previous three years.
Eurozone data is mixed. The manufacturing sector expands in August and the PMI Markit index is indicated at 52,3, slightly below the flash estimate and analyst forecasts (52,4). In Germany the index marks 53,3, slightly above the estimates (53,2), and is at its highest for sixteen months. The French figure was bad with a contraction in activity reported from 48,3 in August (below the consensus of 48,6). For Paris it is a minimum of four months. Spain is slowing down with 53,2 (minimum for ten months). The data for August show that the growth recorded in Germany, Italy, Spain, the Netherlands, Austria and Ireland, counterbalanced by the contractions in France and Greece, have allowed the new expansion of the manufacturing sector. The average recorded so far for the third quarter of 52,4 is however slightly above that of the second quarter (52,3). Eurozone manufacturers reported a further strong expansion in output and new orders, with growth rates improving to the fastest rates since May 2014 and April 2014, respectively. Both domestic and foreign demand improve (including intra-eurozone trade ) as also evidenced by a strong and faster increase in exports.
