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Italy manufacturing activity grows for 11th straight month in May - PMI

Published 02/06/2014, 09:29
Updated 02/06/2014, 10:21

ROME (Reuters) - Italian manufacturing activity expanded for the 11th month running in May, a survey showed on Monday, keeping up expectations that the economy will return to growth in the second quarter.

The Markit/ADACI Purchasing Managers Index (PMI) came in at 53.2, below expectations and down from a three-year high of 54.0 in April, but still well above the 50 mark separating growth from contraction.

The median forecast in a Reuters survey of 13 analysts pointed to a smaller decline to 53.7.

Most of the main components in the PMI fell back from April but remained above the key 50 level, with the manufacturing output sub-index easing to 55.8 from 56.7.

However, the most recent official data from national statistics institute ISTAT has been weaker than the PMI had suggested, with industrial output dropping 0.5 percent in March after a 0.4 percent drop in February.

The euro zone's third-largest economy shrank by 0.1 percent in the first quarter after expanding by 0.1 percent at the end of 2013. That was the first expansion following a two-year recession that the country is still trying to shake off.

REUTERS POLL: Consensus 53.7 (range 52.5.-54.3, 13 participants)

(Writing by Gavin Jones; Editing by Hugh Lawson)

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