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Italian manufacturing sector expanded at a faster pace in October, a report by by the Markit Economics showed on Tuesday.
The Markit/ADACI purchasing managers index, or PMI, increased to 53 in October from 52.6 in the previous month. The latest reading was faster than economists' forecast of 52.6. A PMI reading above 50 suggests expansion of the sector while a reading below 50 suggests contraction.
Manufacturing production continued to rise in October and the latest rise was fastest in three months. The overall pace of new orders growth eased in October.
Meanwhile, the number of workers employed in the Italian manufacturing sector dropped for the thirty second time in the past thirty-three months during October, Markit said. Average input price inflation accelerated to a four-month high in the month. "Nonetheless, the latest data highlight a number of persistent weaknesses in the sector. The rate of output growth remained below that seen at the peak of the recovery, and appears to be centred on export, as opposed to domestic markets," Andrew Self, economist at Markit said.
"Whilst this will come as a boost to those who are searching for an export-led recovery, these data suggest that domestic demand remains weak as we head into the final quarter of 2010." he added.
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