FX.co ★ Italy Manufacturing Sector Contracts in December

The HCOB Italy Manufacturing PMI decreased to 47.9 in December 2025, a drop from November’s 50.6, and fell short of the 50.0 forecast. This decline represents the sharpest reduction since March and was primarily driven by consumer goods producers, while other sectors saw only slight contractions. New orders diminished following a month of growth, due to increased uncertainty and specific challenges in sectors such as steel and automotive. Production fell at its quickest rate in nine months, and employment continued its downward trend, culminating in a full quarter of job losses. On the pricing front, input cost inflation eased from November’s three-year peak, leading manufacturers to slightly reduce their selling prices. Despite the slowdown, confidence improved marginally, bolstered by investments in product launches and strategies to enter new markets.