ROME, Sept. 1 (Xinhua) -- Italy's manufacturing sector contracted for the second consecutive month in August, according to a report released on Thursday by S&P Global Market Intelligence.
For the first time since June 2020, the country's Manufacturing Purchasing Managers' Index (PMI) fell to 48.0 points in August -- its lowest level in more than two years -- from 48.5 points in July.
A PMI reading under 50 represents a contraction.
According to S&P Global Market Intelligence economist Lewis Cooper, the weak business climate and recession fears guided strategic decision making.
"The weak demand picture led firms to pare back further on purchasing, and notably a near-record rate of increase in stocks of finished goods held by firms was recorded as items were left unsold," Cooper said. "The weak performance was reflected further in historically downbeat sentiment towards outlook over the coming year."
Cooper said there was good news in that inflation was tamped down by weaker demand. Italy's government said on Wednesday that prices in August rose a record 8.4 percent, the highest one-month increase in the country since 1985.
