Latest data released by Markit - 2 November 2020
- Prior 53.2
The headline sees a rise to a 31-month high as manufacturing conditions improve at its quickest pace since March 2018. Export demand led the way, with foreign order book volumes improving at its fastest since January 2018.
That said, the recovery in the Italian economy may be more restricted with the services sector - higher weightage - likely to stall amid the resurgence in the virus.
Markit notes that:
"October data pointed to a sustained recovery in the Italian manufacturing sector. Operating conditions improved at the quickest rate since March 2018, with growth of both output and total new orders quickening on the month.
"Improvements in foreign demand continued to provide a boost to the sector, as export order books expanded at the sharpest rate since early-2018.
"All in all, the data provide some further, well needed, positivity, and suggest that the worst of the economic downturn in the goods producing sector is well behind us. But, with COVID-19 cases on the rise and new restrictions being introduced, the recovery has the potential to stall if factories are unable to operate, or if client demand falls considerably as it did in the spring."
