Italian Machine Tool Orders Witnessed Rise In Q4, But Yearly Stay Negative
In the fourth quarter of 2013, the machine tool index of orders, issued by the Studies Department of UCIMU-SISTEMI PER PRODURRE, registered a 4.1% year-over-year increase and an absolute value of 100.6.
“The lack of liquidity of Italian companies as well as delays in the entry into force of the ‘New Sabatini Law’ have a negative influence on buyers of production systems who struggle to invest in new machines,” said Luigi Galdabini, President, UCIMU.
In particular, the index of foreign orders went up by 6% compared to the period September – December 2012. The absolute index, now at 108.7, is above average but it is not enough to reassure Italian manufacturers who registered a fluctuating trend in orders in 2013, a year marked by negative results in the first and third quarter and some recovery in the second and fourth quarter.
As to domestic demand, figures stayed substantially stable (+0.2%) compared to the fourth quarter of 2012 for an absolute value of 86.1. This is a lower value than the base year benchmarks that confirms the ongoing weakness of the domestic market.
On an annual basis, the index registered a 3.2% reduction, mostly due to the impact of a 15.8% decrease in the domestic demand. On the other hand, no brilliant performance was achieved on foreign markets either (-0.7%), where figures were in line with previous year results.
Voicing his concern, Galdabini said, “Despite the increase, the last quarterly survey showed once again that the Italian market operators are still very skeptical when it comes to investing. On the other hand the lack of liquidity and delays in the entry into force of the new Sabatini law further exacerbated the situation.”
He also added that it is now necessary to support the recovery of capital goods demand in Italy and save the country from complete de-industrialisation.
“In order to do so, government measures must now become fully effective, starting from the new Sabatini law. After being approved by the Court of Audit some weeks ago, the rules providing for loans with low interest rates for investments in machines are now on hold until the signature of the necessary agreement between the Ministry of Economic Development, the Deposit and Loan Bank and the Italian Banking Association. We hope that this last stage will be completed as soon as possible, finally making these measures effective for companies that have been waiting and postponing their investments for as long as seven months now,” he said. “Moreover, we ask for more funding to be made available by institutional investors for minibonds and microbonds, i.e. full-blown bonds issued by SMEs through which companies can consolidate their equity and financial position and, by doing so, are more eligible for loans.”
According to Galdabini, since the turnover in the industry is highly dependent on foreign demand, there should be investment in more extensive campaigns aimed at promoting made in Italy products abroad.
