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Italy Nov manufacturing PMI falls to lowest since Feb

Published 12/01/2010, 03:45 AM
Updated 12/01/2010, 03:48 AM

ROME, Dec 1 (Reuters) - Italy's manufacturing sector saw its slowest growth in November since February and firms shed jobs at a faster pace, a survey showed on Wednesday, adding to signs that the sector's recovery has already passed its peak.

The Markit/ADACI Purchasing Managers Index unexpectedly slipped to 52.0 from 53.0 in October, still above the 50 threshold separating growth from contraction.

The average forecast in a Reuters survey of 12 analysts had pointed to a rise to 52.6.

Companies shed staff in November for the 4th straight month as a return to hiring in July proved short-lived, with the relevant sub-index falling to 49.3 from 49.9.

New orders contracted for the first time since September 2009 although manufacturing output still grew but at a slower pace than in October.

Other recent manufacturing data has painted a mixed picture. Business morale as measured by the ISAE institute rose in November to its highest since March 2008, but official output figures, for September, plunged 2.1 percent from the month before.

Economic growth slowed sharply to 0.2 percent in the third quarter after growth of 0.5 percent in the second and 0.4 percent in the first quarter.

The euro zone's third-largest economy is under close market scrutiny amid signs that its debt may face a concerted market attack.

The premium demanded by investors for holding Italian bonds rather than less risky German bunds rose on Tuesday to the highest level since the launch of the euro.

Silvio Berlusconi's unpopular government, which forecasts growth of 1.2 percent this year and 1.3 percent in 2011, faces confidence votes this month which could bring it down half way through its five-year term.

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