Economics
Biggest Italian Factory Slump Since 2014 Hits Euro Economy
- Italian manufacturing contracts as Germany and France slow
- ECB must decide next month whether to cap its bond holdings
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Italian manufacturing shrank the most in almost four years in October, hinting at continued weakness after the economy failed to grow in the third quarter.
IHS Markit’s factory index for the country dropped below the key 50 mark, meaning a contraction -- the first since August 2016. Output shrank for a third month and new orders fell as optimism took a knock from slower global demand and “worries over political stability.”