EM CEEMEA CREDIT: SOAF: more headlines on GNU from local press

• MNI: EUROZONE FINAL FEB MANUF PMI 47.6 (FLASH: 47.3); JAN 46.6

• MNI: GERMANY FINAL FEB MANUF PMI 46.5 (FLASH: 46.1); JAN 45.0

The Italian manufacturing PMI registered a third consecutive increase from November’s low of 44.5, exceeding consensus expectations at 47.4 (vs 46.7 cons, 46.3 prior). The index has nonetheless been contractionary since March 2024, and does not suggest weak industrial production momentum is set to reverse in the near future.

Key notes from the release:

• “The contraction in order book volumes was sharp, but broadly in line with the average seen over the past 12 months. Panellists mentioned weak market conditions both at home and abroad”.
• “February marked the eleventh decrease in output in consecutive months, with production reportedly limited by subdued demand conditions and input shortages”.
• “Italian manufacturers reported further cuts to employment numbers in February. The rate of job shedding picked up to its strongest for three months, as panellists reportedly opted against replacing leavers and reduced temporary staff”.
• “Operating costs increased for the third month in a row in February”…“ Higher raw material and energy prices caused upward pressure on costs, panellists reported”.
• “Meanwhile, factory gate charges were reduced for a sixth month in succession, as firms attempted to drum up sales”