Italian Manufacturing Sector Inches Closer To Growth

Italy’s manufacturing sector showed signs of nearing stability in October. The latest data indicates that after many months of sluggish activity, factories may finally be finding firmer footing.

PMI Approaches Positive Territory

The HCOB Italian Manufacturing Purchasing Managers' Index (PMI) rose to 49.9 in October 2025, narrowly missing the 50 threshold that separates contraction from growth. This is the strongest result since August and better than the Reuters forecast of 49.3.

“Italy’s factories might finally be stabilizing after a shaky year,” said economists at HCOB, suggesting steadier days could be ahead.

Mixed Signals Within the Sector

Factory output increased, reaching a sub-index reading of 50.6.
New orders improved but remained below the growth threshold.
Employment declined slightly, reflecting ongoing caution among manufacturers.

Market Reactions and Outlook

Investors and euro zone markets viewed the data with cautious optimism. Italy’s manufacturing industry carries significant weight in the national economy, and its near-return to expansion could ease concerns after a stagnant third quarter. The government recently adjusted its annual growth outlook downward to around zero, signaling a tempered view of recovery.

Author’s Summary

The latest PMI data offers cautious hope for Italy’s factories, showing that industrial activity is edging closer to growth after months of stagnation and uncertainty.

Finimize — 2025-11-04