The PMI manufacturing index slows down in Europe, even if in Italy it remains well above the historical average. This is what emerges from the data of the IHS Markit PMI Index, which for the Italian manufacturing sector indicates a decrease in March to 55,1 from 56,8 in February. The value represents the lowest result recorded since July, i.e. for eight months. Both production and new orders rose at weaker rates, while corporate optimism eased to its lowest level since last summer. However, there are positive elements: due to the increase in the workload, observes Markit, employment levels have risen again, while on the price front, the inflation rates of purchase and sale costs are decreasing.
The same cannot be said of the German figure and that of the entire Eurozone. Also in Germany, as in Italy, the March reading represents the lowest since July 2017, but is well below that seen at the height of the recovery last December. Indeed, the German manufacturing sector continues to lose momentum in March with output growth slowing for third consecutive month: Manufacturing PMI fell to 58,2, down from 60,6 in February and below market expectations, even as the sector continues to signal a strong overall improvement in trading conditions
The manufacturing sector in the Eurozone also falls to an eight-month low due to the general slowdown in growth in the main countries. Expansion rates eased across all countries covered by IHS Markit's latest PMI survey with the final Eurozone manufacturing index coming in at 56,6, unchanged from the previous flash estimate, down from 58,6 in February. The first quarter average of 58,2 remains, however, indicative of solid growth.
