Italy’s manufacturing sector shrinks for 6th month in December -PMI

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ROME, Jan 2 (Reuters) – Italy’s manufacturing sector shrank for a sixth straight month in December amid persistent declines in both output and new orders, a survey showed on Monday.

The S&P Global Purchasing Managers’ Index (PMI) for Italian manufacturing came in at 48.5, broadly stable compared to 48.4 the previous month and still below the 50 mark that separates growth from contraction .

The reading matched the median forecast in a Reuters poll of nine analysts.

The manufacturing output subindex rose to 48.8 from 47.1 the previous month, indicating a more modest contraction, while the new orders indicator rose to 44.4 from 44.1 but remained deep in ‘negative territory below 50.

“The Italian manufacturing sector remained mired in contraction during December, as output and order books continued to decline, albeit at lower rates,” said Lewis Cooper, economist at S&P Global Market Intelligence. .

In November, Rome raised its economic growth forecast for 2022 to 3.7% from 3.3% on the back of stronger-than-expected expansion in the first nine months of the year. It left its 2023 forecast unchanged at 0.6%.

Last week parliament approved the first budget of Prime Minister Giorgia Meloni’s new government, which allocated more than 21 billion euros ($22 billion) in tax cuts and bonuses to help companies and families coping with the energy crisis. ($1 = 0.9414 euro) (Reporting by Angelo Amante, editing by Hugh Lawson)

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