Skyline of Florence, Italy

Italy Industry November 2020

Italy: Industrial production shrinks in November

Industrial output decreased 1.4% in November on a month-on-month, seasonally-adjusted basis. The reading contrasted October’s 1.4% rise.

November’s drop reflected a downturn in the manufacturing sector as well as a sharper contraction in the utilities sector which more than offset an improvement in the mining and quarrying sector. Within the all-important manufacturing sector, the largest fall were recorded in the production of textiles.

On an annual basis, industrial production contracted 4.2% in November in calendar-adjusted terms, following October’s less pronounced 1.9% drop. Meanwhile, the annual average variation in industrial production deteriorated from October’s minus 10.8% to minus 11.1% in November.

Commenting on the release, Paolo Pizzoli, senior economist at ING, stated:

“The outlook for December 2020 does not look bright: widespread containment measures in the main European trading partners likely weighed on export flows and, as a consequence, on Italian production. We believe that in 4Q20, the Italian industrial sector was not strong enough to prevent a service sector driven quarterly contraction in GDP in 4Q20. As we suspect that the risks of longer-lasting containment measures are on the rise, both domestically and in the main trading partners, we anticipate a quarterly GDP contraction in 1Q21. Not the best environment for a possible government crisis.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest