Italian HCOB Manufacturing PMI (Jan) 48.1 vs. Exp. 48.1 (Prev. 47.9)

The Italian HCOB Manufacturing PMI matched expectations at 48.1, signaling a potential stabilization in economic conditions despite being in contraction territory.

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Italian HCOB Manufacturing PMI (Jan) 48.1 vs. Exp. 48.1 (Prev. 47.9)

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  • "Input prices rose at the fastest pace in more than three years, driven by broad-based increases across key raw materials including metals and wood. This pick-up in cost inflation fed through to selling prices, which climbed for the second time in three months."
  • "Firms scaled back their purchasing activity at a faster pace, contributing to slimmer input inventories. At the same time, there were signs of stabilisation in supply chains, with delivery times shortening for the first time since mid-2025."
  • "Employment provided a rare bright spot, rising for the first time in four months as firms hired mainly permanent staff, reflecting firmer expectations for the year ahead."
Context

The uptick in input prices suggests rising inflation pressures, which could influence future ECB policy, while the increase in employment reflects improving optimism for businesses. Overall, the mixed signals imply cautious monitoring of Italy's economic trajectory as we move into the year.

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