Prior 50.6Key findings:Softer expansions in output and new orders Sharp spike in cost inflation fails to deter growth in purchasing and stocks Supply chains conditions decline at strongest rate since October 2022Comment:Eleanor Dennison, Economist at S&P Global Market Intelligence, said: “The impact of war in the Middle East is being felt by manufacturers in Italy, particularly in their supply chains as lead times on inputs lengthened to the most notable degree seen October 2022 amid reports of shortages and logistical challenges. “Prices data showed a steep intensification of cost pressures, as firms widely reported paying more for raw materials, transportation and energy. The rate of cost inflation shot up to its highest level in three-and-a-half years, triggering a sharp increase in average charges. “In anticipation of further supply chain disruption and price increases, manufacturers purchased additional inputs for the first time in well over three years, leading to the first increase in stocks in eight months. “Although raised uncertainty was signalled by a rapid drop in confidence levels, production volumes and order books increased for a second month in a row, albeit at softer and only marginal rates. Positively, firms also continued to add new staff.”
This article was written by Giuseppe Dellamotta at investinglive.com.
💡 DMK Insight
Softer expansions in output and new orders signal potential headwinds for growth: The recent data shows a decline in supply chain conditions, which could lead to increased volatility in both the forex and crypto markets. Traders should note that a sharp spike in cost inflation, despite not deterring growth, indicates underlying pressures that could affect profit margins. This is particularly relevant for commodities and currencies tied to global trade, as disruptions in supply chains often lead to price fluctuations. With the geopolitical tensions in the Middle East impacting market sentiment, it’s crucial to monitor how these developments affect major currency pairs and crypto assets. If inflation continues to rise, we might see central banks adjusting their monetary policies sooner than expected, which could trigger significant moves in forex markets. Keep an eye on key levels in the USD and commodities like oil, as they could serve as leading indicators for broader market shifts. Watch for any updates on supply chain improvements or further inflation data, as these will be critical in shaping trading strategies moving forward.
📮 Takeaway
Monitor inflation trends and supply chain developments closely; they could trigger significant moves in forex and commodity markets.






