Italy’s manufacturing sector returned to growth in August, driven by the strongest expansion in production since early 2023 and a modest rebound in new orders. The Purchasing Managers’ Index (PMI) – a key indicator of industrial health – rose to 50.4, up from July’s 49.8, crossing the 50-point threshold that separates contraction from expansion.
The improvement marks a positive shift for Italian industry, which had faced declining demand and uncertain economic conditions in previous months. According to Nils Müller, Junior Economist at Hamburg Commercial Bank, “The recovery was supported by a sharp rise in output, growing at the fastest pace since the beginning of 2023, alongside a slight increase in new orders.”
The data reflects resilience in Italy’s industrial base, though challenges remain. Employment levels continued to stagnate, and global trade tensions continue to pose risks to sustained growth. Nevertheless, the return to expansion offers cautious optimism for the eurozone’s third-largest economy.
