After a prolonged period of difficulty, the Italian manufacturing sector can finally breathe a sigh of relief. The Hcob Italy Manufacturing Purchasing Managers' Index (PMI) recorded a value of 50.4 in March, compared to February's 48.7, indicating a slight expansion in manufacturing activity. This marks the first time since March 2023 that the index has surpassed the critical threshold of 50 points, which separates contraction from expansion. Tariq Kamal Chaudhry, an economist at Hamburg Commercial Bank, who compiles the index in collaboration with S&P Global, commented on the sense of optimism pervading the Italian manufacturing sector: "After nearly a year of difficulty, the Hcob PMI has exited the contraction zone. With a value of 50.4, Italy joins Spain as the second, among the four largest European economies, to record an expansion. Production has seen a significant leap compared to previous months."
The index's improvement isn't limited to production and orders, both of which are experiencing growth after a year of decline, but also extends to employment conditions, which are showing signs of improvement. However, there's a constraint on the PMI stemming from purchases, as companies continue to draw on inventories. The slight uptick in total sales in March is primarily attributed to demand from domestic customers, while demand from abroad shows a slight decline. This could be due to various factors, including global economic uncertainties and restrictive trade policies. Nevertheless, the positive manufacturing PMI index is an encouraging signal for the Italian economy. If the growth trend persists, we may witness a broader and more sustainable recovery in the manufacturing sector, with potential benefits for the entire national economy.

Source: https://www.fortuneita.com/2024/04/02/indice-pmi-manifatturiero-dellitalia-in-crescita-dopo-un-anno-di-contrazioni/