Italy's manufacturing sector activity remained firmly in contraction territory at the start of the second quarter, survey from Markit Economics showed Thursday.
The seasonally adjusted Markit/ADACI Purchasing Managers' Index rose to 45.5 in April from 44.5 in March. The reading was above the consensus forecast of 45.
The headline index has been below the neutral 50 value for 21 consecutive months. This was the longest period of continuous contraction over the entire series history.
Both output and employment declined in April, but at slower pace than in March. Weighing on the sector was a further sharp decrease new orders, which panelists often linked to lower demand in the domestic market.
Further, manufacturers recorded a marked and accelerated fall in their average input prices in the latest survey period. Due to competitive pressure, businesses lowered output prices to the greatest extent in seven months.
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