Italy: Industrial production drops unexpectedly in August
October 10, 2013
In August, industrial output fell a seasonally-adjusted 0.3% over the previous month. The reading marked an improvement over the 1.0% drop recorded in July (previously reported: -1.1% month on month) but contrasted market expectations of a 0.6% increase. At a sector level, both manufacturing and mining and quarrying improved over to the previous month, whereas electricity, gas and water recorded a larger contraction compared to July.
On an annual basis, industrial output fell a working-day adjusted 4.6%, which was below the 4.2% drop recorded in July. Industrial production has been contracting for 24 consecutive months. Meanwhile, annual average growth in industrial output inched up from minus 4.9% in July to minus 4.8% in August.
FocusEconomics Consensus Forecast panelists see industrial production contracting 3.2% in 2013, which is down 0.3 percentage points from last month's forecast. For 2014, panelists expect industrial output to expand 0.8%, which is down 0.1 percentage points from last month's projection.
Author: Armando Ciccarelli, Head of Data Solutions