Series record falls were also recorded for output, new orders, export orders, backlogs of work, purchasing activity and employment. At the same time input prices fell for the first time in 40 months in November, with the decline in costs being the steepest since late 2001. Fall in prices of oil based products and raw materials were the key drivers of this decline. At the same time, the factory gate prices registered the steepest drop in survey history, although the rate of fall in these prices was much slower than that of input costs.
Andrew Self, Economist at Markit Economics, commenting on the latest PMI data said "With the Italian economy already in technical recession, latest data from the manufacturing sector indicates that the economic downturn has accelerated markedly through the fourth quarter so far.
Output Down 6.9% In October - Stats Office
This PMI reading is only confirmed by the latest data from the Italian Statistics Office - ISTAT - on industrial output in October. Month-on-month production dropped a seasonally adjusted 1.2 percent - following a revised 2.6 percent drop in September, the national statistics office in Rome said today. Year on year production adjusted for working days fell 6.9 percent.
More significantly, the output index continues to fall month by month, and is now well below that December 2006 historic high of 101.1. Maybe we should be asking ourselves, will we ever get back up there again? Certainly it won't be easy, and not in the present climate.