Italy's manufacturing growth at lowest rate in 2 years

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Italy's manufacturing growth at lowest rate in 2 years

Italy's manufacturing sector grew at the lowest rate in two years in June, a survey showed on Friday, as firms reported weak demand and increasingly downbeat expectations.

The S&P Global Purchasing Managers' Index PMI for Italian manufacturing was 50.9, down from 51.9 in May and the lowest reading since June 2020.

The index fell for a fourth consecutive month as manufacturing in the euro zone's third largest economy is hit by high input costs and uncertainty linked to the war in Ukraine.

It was still slightly higher than the 50 mark that separates growth from contraction - a 24th straight month of expansion, and beat the median forecast of 50.5 in a Reuters survey of 15 analysts.

The new orders sub-index fell to 43.9 from 47.4, well below the key 50 threshold and posting the seventh straight decline.

The sub-index on firms' future expectations hit its lowest level since March 2020, at the start of Italy's COVID 19 outbreak.

The economic outlook of countries across the euro zone has been affected by the Ukraine conflict, and Italy's economy grew just 0.1% in the first quarter from the previous three months.