FX.co ★ Italy’s Manufacturing Slump Eases as HCOB PMI Edges Up in January

Italy’s manufacturing sector showed tentative signs of stabilization at the start of 2026, as the HCOB Italy Manufacturing Purchasing Managers’ Index (PMI) inched higher in January. The index rose to 48.1 in January 2026, up from 47.9 in December 2025, according to data updated on 2 February 2026.

While the PMI reading remains below the 50-point threshold that separates contraction from expansion, the slight uptick suggests that the pace of decline in Italian manufacturing activity may be moderating. The improvement, though marginal, indicates that conditions in the sector were somewhat less weak in January compared with the previous month.

The latest data will be closely watched by investors and policymakers as they assess whether Italy’s manufacturing downturn is bottoming out or merely pausing. With the PMI still in negative territory, the sector continues to face headwinds, but the January increase offers a cautious hint of improving sentiment.