Italy's manufacturing sector contracted for a sixth month running in December amid a persistent decline in both output and new orders, a survey showed on Monday.

The S&P Global Purchasing Managers' Index (PMI) for Italian manufacturing came in at 48.5, broadly stable compared with 48.4 the month before and still below the 50 mark that separates growth from contraction.

The reading matched the median forecast in a Reuters survey of nine analysts.

The manufacturing output subindex climbed to 48.8 from 47.1 the month before, denoting a more modest contraction, while the new orders indicator edged up to 44.4 from 44.1 but remained deep in negative, sub-50 territory.

"The Italian manufacturing sector remained mired in a downturn during December, as production and order books continued to decline, albeit at softer rates," said Lewis Cooper, economist at S&P Global Market Intelligence.

In November, Rome raised its economic growth forecast for 2022 to 3.7% from 3.3% on the back of a stronger than expected expansion in the first nine months of the year. It left its 2023 forecast unchanged at 0.6%.

Last week parliament approved the first budget of Prime Minister Giorgia Meloni's new government, which allocated more than 21 billion euros ($22 billion) in tax breaks and bonuses to help firms and households cope with the energy crisis. ($1 = 0.9414 euros) (Reporting by Angelo Amante, editing by Hugh Lawson)