'A lot of shadow and little light' - economist (Il Sole 24 Ore Radiocor) - London , 02 May - In April, Italy's purchasing managers' index for the manufacturing sector dropped to 47.3 from 50.4 in March, as operating conditions deteriorated after a month of improvement, according to data released by S&P Global and Hamburg Commercial Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

'The manufacturing sector in Italy has taken a step backward," commented Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank. "In April, the HCOB Manufacturing PMI dropped after just one month of surpassing the 50.0 mark.

This indicates that the economy may not be on as strong a recovery path as previously thought. The downward risks posed by input price inflation and interest rates continue to make life difficult for the Italian industry.

'There's a lot of shadow and little light. To glean optimism from the numbers, one must look closely. The Employment Index fell in April compared to the previous month but is still showing growth. However, if weak demand for Italian manufactured goods persists, the uptick in hiring could be reversed. Another source of optimism is the improvement in supplier delivery times despite ongoing tensions in the Red Sea. However, the significant easing of supply chains also reflects the weak demand situation.".

AAA-Hob

(RADIOCOR) 02-05-24 09:51:21 (0209) 5 NNNN