Italy July manufacturing PMI 51.3 vs 52.3 expected

Italy’s July manufacturing PMI came in at 51.3, below the 52.3 forecast and down from 52.2 prior, indicating the sector is still expanding but at a slower pace. The report showed softer output growth, the first drop in new orders in three months, and a retrenchment in jobs and purchasing for the first time this year. Inflationary pressures also eased, suggesting some relief on costs and supply chains. For markets, the data modestly weakens the growth outlook for Italy and the euro area, which can weigh on euro sentiment and cyclical European assets, though the PMI remains above the 50 expansion threshold.