Italy: Industrial production contracts further in March
May 9, 2014
In March, industrial output fell a seasonally-adjusted 0.5% over the previous month, which followed the revised 0.4% contraction tallied in February (previously reported: -0.5% month-on-month). March's decrease contrasted market expectations of a 0.3% increase. The result came on the back of a deterioration in manufacturing as well as in mining and quarrying, whereas electricity, gas, steam and air conditioning fared better compared to the previous month.
On an annual basis, industrial output contracted a working-day adjusted 0.4%, which contrasted the 0.4% increase recoded in February. Meanwhile, annual average growth in industrial output stepped up from minus 2.3% in February to minus 1.9% in March, thus reaching the highest level in two years.
FocusEconomics Consensus Forecast panelists see industrial production contracting 0.9% in 2014, which is up 0.3 percentage points from last month's forecast. For 2015, panelists expect industrial output to expand 1.6%.
Author: Dirina Mançellari, Senior Economist