Italy: Industrial output rises in February
Industrial output rose 0.1% in month-on-month seasonally adjusted terms in February, which contrasted January’s 1.4% decrease. February’s turnaround largely reflected recoveries in manufacturing and mining and quarrying production.
On an annual basis, industrial production fell at a more moderate rate of 3.2% in February (January: -3.6% yoy). Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at minus 2.7% in February, down from January’s minus 2.6%.
Commenting on the reading, ING’s Paolo Pizzoli stated:
“All in all, today’s production data suggests that the soft industrial patch is not over yet and evidence from recent business surveys does not point to any imminent improvement. Order books have stopped deteriorating and the de-stocking process seems far from complete. As a consequence, businesses expect only a minor improvement in production levels over the second quarter. With February data now in the bag, an unlikely sharp rebound in March production data would be needed to make industry a growth driver in the first quarter of 2024. Luckily, both services and construction looks set to compensate, allowing for positive GDP growth to materialize.”