S&P Global reported that, after seasonal adjustment, Italy's S&P Global Manufacturing Purchasing Managers' Index (PMI) rose to 52.1 in April from the previous reading of 51.3, marking a four-year high. Among the sub-indices, output, employment and suppliers' delivery times all made positive contributions.During the period, the growth rate of output was the strongest in more than three years. However, total new orders edged down slightly, mainly due to customer caution triggered by the Middle East conflict. Nevertheless, new export orders continued to record moderate growth. The deterioration in suppliers' delivery times was the most severe since mid-2022, as the ongoing Middle East conflict continued to disrupt supply chains, with transportation issues, inventory shortages and shipping delays all cited.Related NewsIndustrial Production YoY for Apr in the United States is 1.4%, higher than the previous value of 0.7%.Input cost inflation accelerated to the highest level in nearly four years, with about 60% of firms reporting intensified cost pressures. Although output charge inflation remained relatively moderate (25% of firms raised prices), it still posted the strongest increase in three and a half years, suggesting profit margins are likely to be squeezed. Growth in purchasing activity reached a four-year high, as some firms brought forward purchases to cope with expected price increases and shortages. Employment growth was the fastest since September 2024.Firms remained confident about output prospects over the next 12 months, though sentiment was below the long-term average, with some expressing concerns about the extent of the Middle East conflict's impact on the economy. (da/a)
AASTOCKS Financial News