Italy's manufacturing sector enjoyed a strong start to 2018, registering the highest growth in output since early 2011 and one of the greatest rises in new orders of the past 18 years. Jobs were created at a faster rate as capacity came under further strain, but inflationary pressures intensified in line with growing supply-side shortages.

The headline IHS Markit Italy Manufacturing Purchasing Managers' Index improved to a near seven-year high of 59.0 in January. That was up from December's 57.4 and represented a substantial improvement in operating conditions. The PMI has now continuously posted above the 50.0 no-change mark for 17 months.