• Prior 48.5

Italian factory activity declines for a second month running amid a further steep fall in new orders. Weak demand conditions remain a problem but at least that is helping to see inflation pressures ease slightly. S&P Global notes that:

"August PMI data pointed to a sustained deterioration in manufacturing conditions in Italy. Factory production declined further amid a marked drop in order book volumes.

"The weak demand picture led firms to pare back further on purchasing, and notably, a near record rate of increase in stocks of finished goods held by firms was recorded as items were left unsold.

"Some good news was again found with respect to inflationary pressures which continued to ease amid weaker demand for inputs.

"Nonetheless, the weak performance was reflected further in historically downbeat sentiment towards outlook over the coming year. Though firms, on average, expect output to be higher in 12 months’ time, fears of a recession are building further, which, combined with the war in Ukraine and inflationary concerns is weighing heavily on business confidence."