Good news on the macro side and the stock market benefits from it. The PMI Markit manufacturing index in Italy rose in March to a six-year high of 55,7 from 55 in February. This was communicated by Markit which updated the data on European countries and Japan.
The level of production increased for the 27th consecutive month; the inflow of new orders was strong, favored by the foreign component (highest since November 2015). Italian manufacturers hired more staff and, for the third consecutive month, at a higher rate, reaching the fastest rate since November 2000. Average purchase prices increased sharply, the cost inflation rate remained well above the long-term trend and translated into higher selling prices: the highest since April 2011.
As for the future, Italian manufacturers have shown a significant level of optimism and Phil Smith, an economist at Markit who elaborated the report, points out that "the job creation rate has approached the highest in 20 years of data collection".
The Eurozone average is also positive, with the manufacturing PMI rising to 56,2 (flash estimate: 56,2, February final: 55,4). This is the fastest growth in manufacturing output and new orders since April 2011. Inflationary pressure on prices remains high. Also for Germany, as for Italy, the PMI index rose to the top since April 2011 at 58,3 from 56,8. Stable in France at 53,3 points, down in Great Britain at 54,2 from 54,5 in February and in Spain at 53,9 points from 54,8 in February.
