The HCOB Italy Manufacturing PMI fell to 48.4 in June 2025 from 49.2 in May, signaling a 15th straight month of contraction and one that was the fastest in three months. New orders continued to decline, triggering a further reduction in output levels. The contraction in production remained substantial, driven by weak demand from both domestic and international clients. As a result, companies cut back on purchasing and employment, while also reducing pre-production inventories. Meanwhile, inflationary pressures moderated in June, reflected in decreases in both input costs and output prices. Supplier discounts were largely transferred to customers as businesses aimed to maintain competitiveness. Finally, output expectations among Italian manufacturers remained positive in June, though confidence slipped to its lowest level since last November amid global economic uncertainty and subdued customer demand.