Italy IHS Markit Manufacturing PMI

Info

History

Chart

Impact:

Medium

Latest Release:

Surprise:

EUR0.3

EUR

Actual:

58.3

Forecast: 58

Previous/Revision:

58.3

Period: Mar 2022

What Does It Measure?

The IHS Markit Manufacturing Purchasing Managers' Index (PMI) for Italy measures the economic health of the manufacturing sector by surveying purchasing managers about their business conditions, including production, employment, new orders, and supplier deliveries. This indicator is primarily focused on gauging manufacturing activity and is expressed on a scale where above 50 indicates expansion, while below 50 signifies contraction, representing a national indicator.

Frequency

The IHS Markit Manufacturing PMI is released monthly, typically on the first business day of the month, and provides a preliminary estimate that may be revised in subsequent releases.

Why Do Traders Care?

Traders pay close attention to the IHS Markit Manufacturing PMI as it offers a timely snapshot of economic conditions and potential future growth within Italy’s manufacturing sector, influencing financial markets significantly. Higher-than-expected PMI figures are generally bullish for the euro and equities, while disappointing results can lead to bearish reactions across currencies and stocks.

What Is It Derived From?

The IHS Markit Manufacturing PMI is derived from a survey of approximately 400 purchasing managers within the manufacturing industry who provide insights on various aspects of their business activities, such as output, orders, and employment. The data collected is weighted and compiled using a diffusion index methodology, which ensures that responses reflect overall manufacturing trends in the economy.

Description

The IHS Markit Manufacturing PMI serves as a leading economic indicator, reflecting business conditions and sentiment in the manufacturing sector. It is particularly useful for identifying potential shifts in economic momentum before they are fully reflected in official data, providing valuable insights for policymakers and investors alike.

Additional Notes

As a coincident indicator, the Manufacturing PMI tracks current economic conditions closely and is often used alongside other economic indicators, such as industrial production and GDP growth, to provide a holistic view of the manufacturing landscape. The index not only highlights trends within Italy but also allows for comparative analysis against other nations' manufacturing indices, thereby gauging Italy’s performance on a global scale.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for Euro, Bullish for Stocks. Lower than expected: Bearish for Euro, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Forecast	Previous	Surprise
Mar 01, 2022	58.3	58	58.3	0.3
Feb 01, 2022	58.3	61	62	-2.7
Jan 03, 2022	62	61.5	62.8	0.5
Dec 01, 2021	62.8	61.1	61.1	1.7
Nov 02, 2021	61.1	59.7	59.7	1.4
Oct 01, 2021	59.7	59.4	60.9	0.3
Sep 01, 2021	60.9	60.1	60.3	0.8
Aug 02, 2021	60.3	61.5	62.2	-1.2
Jul 01, 2021	62.2	62.2	62.3
Jun 01, 2021	62.3	62	60.7	0.3
May 03, 2021	60.7	61	59.8	-0.3
Apr 01, 2021	59.8	59.8	56.9
Mar 01, 2021	56.9	57	55.1	-0.1
Feb 01, 2021	55.1	52.4	52.8	2.7
Jan 04, 2021	52.8	53.7	51.5	-0.9
Dec 01, 2020	51.5	52	53.8	-0.5
Nov 02, 2020	53.8	53.5	53.2	0.3