ROME (Reuters) - Italian manufacturing activity contracted for a fourth month running in July but at a slower pace than the month before, a survey showed on Thursday, with both output and new orders falling at softer rates.
The HCOB Global Purchasing Managers' Index (PMI) for manufacturing in the euro zone's third largest economy edged up to 47.4 from 45.7 in June, remaining below the 50 mark that separates growth from contraction.
The result was above a median forecast of 46.1 in a Reuters survey of 14 analysts.
"Italian industry is on a path to recovery," said HCOB economist Tariq Kamal Chaudhry.
The manufacturing output sub-index came in at 46.5, up from 44.6, while the new orders rose to 44.8 from 42.4 the month before. They both remained far below the key 50 line in July.
"Order intakes both at the total level and from foreign markets are falling at a sharp pace, with only a slight easing from June," Chaudhry said.
Last month, Economy Minister Giancarlo Giorgetti said the Italian economy was on track to reach a government growth target of 1% for 2024.
Most analysts forecast that the economy will expand by between 0.7% and 1%, broadly in line with last year's 0.9% rate.