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Growth in Italy factory activity slows in May - PMI

Published 06/01/2016, 03:51 AM
Updated 06/01/2016, 04:00 AM
© Reuters. Trucks are parked at the Gioia Tauro commercial harbour

ROME, June 1 - Growth in Italian manufacturing activity slowed in May after accelerating in the previous two months, with orders, output and employment all losing momentum, a survey showed on Wednesday.

The data offered no sign that Italy's modest economic growth over the past year is likely to strengthen soon.

The Markit/ADACI Purchasing Managers Index fell in May to 52.4 from 53.9 in April. The drop was steeper than all analysts polled by Reuters had expected and drags the index back towards the 50 mark that separates growth from contraction.

A Reuters survey of 11 economists had forecast a reading of 53.0, with forecasts ranging from 52.5 to 53.5.

The sub-index for new orders dropped sharply to 52.6 from 54.9.

© Reuters. Trucks are parked at the Gioia Tauro commercial harbour

The euro zone's third-largest economy expanded by 0.8 percent last year, the first year of growth after a three-year

recession - around half the average growth rate in the 19-nation currency bloc.

The government of Prime Minister Matteo Renzi forecasts a slight acceleration this year to 1.2 percent.

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