The HCOB Italy Manufacturing PMI rose to 50.4 in August 2025, up from 49.8 in July and surpassing market expectations of 49.8. The latest reading suggests the manufacturing sector has begun to grow again after 16 months of contraction, albeit very mildly, fueled by the largest increase in production volumes in nearly two and a half years. However, the overall uplift in order books was limited, as weakening export performance continued to weigh on demand. Meanwhile, employment decreased again, but at a marginal pace.