Italy: Industrial output drops more than expected in February
April 10, 2013
In February, industrial output fell a seasonally adjusted 0.8% over the previous month. The decline contrasted the revised 1.0% increase recorded in January (previously reported: +0.8%) and exceeded market expectations of a 0.5% contraction. The monthly drop was largely driven by a contraction in manufacturing, whereas the other sectors improved compared to the previous month.
On an annual basis, industrial output dropped a working-day adjusted 3.8%, which represents a deterioration over January's 3.6% decline and marks an 18th consecutive contraction. Despite the subdued annual reading, the trend improved, with annual average growth in industrial production stepping up from minus 6.3% in January to minus 6.0% in February.
FocusEconomics Consensus Forecast panellists see industrial production contracting 2.1% in 2013, which is unchanged from last month's forecast. For 2014, panellists expect industrial output to expand 1.5%.
Author: Armando Ciccarelli, Head of Data Solutions