In October manufacturing in Italy showed the biggest slump in almost four years, Bloomberg reports.

It signals that economy is weakening after it failed to show growth in third quarter.

Production index from IHS Markit fell below 50 level, meaning contraction, first time since August 2016. Volumes are shrinking for three months already, as well as number of new orders under pressure of global outlook and political instability.

Manufacturing PMI for euro area fell to 52. This is the lowest reading in two years.

Country’s government thinks that in current situation its plans to expand spending are justified even more, despite of growing debt. Earlier EU rejected Italy’s budget sending it for revision.

Output in Germany fell as well in October to the lowest in more than two years. The similar situation in observed in Netherlands, France and Austria.