Italy's manufacturing growth slows in March - PMI

ROME, April 3 (Reuters) - Italy's manufacturing sector expanded slightly in March but growth slowed from the month before, a survey showed on Monday, as economic prospects remain uncertain in the euro zone's third largest economy. The S&P Global Purchasing Managers' Index (PMI) for Italian manufacturing came in at 51.1, down from 52.0 in February but still slightly above the 50 mark that separates growth from contraction. The reading was below the median forecast of 52.0 in a Reuters survey of analysts. The manufacturing output sub-index was broadly stable at 53.9 from 54.0 in February, while the new orders indicator slipped to 50.8 from a previous 51.1. "Once again production rose markedly, whilst there was a noticeable easing of supply side constraints and price pressures, two factors that have dominated sector performance since the onset of the pandemic in 2020," said Paul Smith, economics director at S&P Global Market Intelligence. "That said, the recovery remains fragile, with new order growth remaining lacklustre amid reports of hesitancy amongst clients to commit to new business against a backdrop of tightening monetary policy and an uncertain macroeconomic environment," he added.

Italian Economy Minister Giancarlo Giorgetti said in March the outlook had brightened since a 0.1% quarterly fall in gross domestic product at the end of 2022, and the country was likely to avoid a second quarter of contraction at the start of this year. (Reporting by Angelo Amante, editing by Gavin Jones and Toby Chopra)