Italian Manufacturing PMI Rises to 50.6 in February

The manufacturing sector in Italy returned to growth in February, ending a two-month period of contraction and offering signs of a potential economic pick-up. The Italian HCOB Manufacturing Purchasing Managers Index (PMI) rose sharply to 50.6 from 48.1 in January, climbing above the critical 50.0 mark that separates expansion from contraction. This improvement was driven by sub-indexes for output and new orders, which both moved into growth territory for the first time in three months, reaching 51.5 and 50.8 respectively. However, the recovery remains uneven as the indicator for new export orders fell to 47.6, indicating a faster pace of contraction compared to the previous month. Jonas Feldhusen, an economist at Hamburg Commercial Bank AG, suggested that the current progress is not yet entirely stable. > The overall improvement in manufacturing conditions in February still rests on a fragile foundation. This data follows a 0.3% growth rate in the fourth quarter of last year, which exceeded initial expectations. The government of Italy has established a full-year growth target of 0.7% for 2026, following an estimated 0.5% rate for the preceding year.