Latest data released by Markit - 4 May 2020
- Prior 40.3
Italian factory activity contracts at its fastest rate on record with the headline reading being a record low, with output and new orders showing unprecedented declines. Notably, job cuts are also at their sharpest rate since 2009. Markit notes that:
"COVID-19 impacts continued to weigh heavily on the Italian manufacturing sector during April, with operating conditions deteriorating at the most marked rate in over 22 years of data collection. Factory production declined at an unprecedented rate, with the respective seasonally adjusted Output Index dropping to a fresh series low amid the most marked reduction in inflows of new business on record. Overwhelmingly, survey respondents linked reductions in both output and order book volumes to the COVID-19 pandemic.
"Firms continued to cut staffing levels, with the reduction in employment the quickest recorded since the depths of the financial crisis in April 2009. Respondents primarily blamed weak demand conditions, although there were some mentions that the fall in staffing reflected use of government furlough schemes.
"Overall, PMI data highlight the unprecedented and substantial damage from the coronavirus pandemic on the Italian manufacturing sector. With lockdown measures set to remain in place for the coming weeks at least, and probably not fully removed for several months, the downturn is not likely to ease markedly in the immediate future as firms battle with shutdowns both domestically and abroad."
