January data showed slower declines in output and new business at Italian manufacturers, and also a return to growth in new export orders. The pace of job shedding remained notable, however, with firms still in possession of excess capacity. Rising raw material costs meanwhile led to higher average input prices, resulting in another slight increase in charges. The downturn in Italian manufacturing continued to ease at the start of 2013, as signalled by a rise in the seasonally adjusted Markit/ADACI Purchasing Managers’ Index ® (PMI ® ) to a ten-month high of 47.8 in January, up from December’s mark of 46.7. A ... (full story)