An indicator of Italian manufacturing sector performance rose to its highest level in almost two years in June, a survey by Markit Economics showed Monday, suggesting that the rate of contraction in activity has eased notably amid slower decline in new orders.
The seasonally adjusted Markit/ADACI purchasing managers' index rose to a 23-month high of 49.1 in June from 47.3 in May. Readings below 50, however, suggests contraction of the sector.
Production expanded for the first time since September 2011. New orders continued to fall, but the rate of decline was the weakest in the current 25-month bout declines.
This improvement was driven by higher new export orders, which have now increased for six successive months. The latest gain in new export orders was the sharpest since April 2011.
Employment at Italian factories continued to decrease for a twenty third consecutive month in June, but the pace of decline eased to the slowest since March 2012.
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