Key findings:

• Output rises at strongest rate in over three years, but demand softens
• Purchasing activity growth hits four-year record
• Delivery delays and cost inflation their greatest in nearly four years

Comment:

Eleanor Dennison, Economist at S&P Global Market Intelligence, said:

“On the surface, the Italian manufacturing sector signalled its best improvement in operating conditions in four years in April. Despite contending with adverse supply chain conditions and elevated price pressures caused by war in the Middle East, Italian manufacturers pressed on with production and hiring.

“Latest data revealed some softness in demand, however, which can be attributed to the domestic market given that growth in export sales was sustained.

“Longer lead times and the expectation of further cost rises encouraged firms’ to increase their purchasing activity, but this was not sufficient to build stocks. While stronger cost pressures were felt by the majority of firms, they showed a greater degree of constraint in their own price setting – a sign that margins will be squeezed.”